FG exempts gas generators, CNG/LPG dual fuel vehicles, 61 others from VAT (Full List)
The Federal Government has announced the exemption of 63 items from Value-Added Tax (VAT), a move aimed at stimulating the oil and gas sector and easing economic pressures.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made the announcement in a post on X, referencing an official gazette titled the “Value Added Tax (Modification) Order, 2024,” dated September 3, 2024.
This announcement comes shortly after Finance Minister Wale Edun introduced concessions intended to revitalize both the upstream and downstream segments of Nigeria’s oil and gas industry.
The minister outlined two key fiscal incentives: the VAT modification order and tax incentives for deep offshore oil and gas production, as per the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.
According to the official gazette, provisions related to Automotive Gas Oil (AGO) will retroactively take effect from October 1, 2023.
The following items have been exempted from VAT:
1. CNG/LPG Dual Fuel Vehicles
2. Dedicated LPG Vehicles
3. Parts and semi-knocked down units for assembly of CNG and LPG buses
4. Parts and semi-knocked down units for assembly of Electric Vehicles
5. Electric Vehicles
6. Electric Vehicle Batteries
7. Electric Vehicle Charging Systems
8. Electric Vehicle Solar Charging Systems
9. LPG/CNG Conversion Kits
10. CNG Cylinders
11. CNG Cascades
12. CNG Dispensers
13. Gas Generators
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14. CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers)
15. Steel Pipes
16. Steel Valves & Fittings
17. SS Tubes & Fittings
18. Storage Tanks (all sizes)
19. Regulators
20. CNG Pumps and Compressors (all types)
21. Steel
22. Pressure Relief Valves
23. Hydraulic Press/Rolling Machine
24. Heat Treatment Equipment
25. Liquid Level Gauge
26. Pumping Housing and Motors
27. Regulator Body
28. Pressure Gauge
29. Truck Chassis
30. Metering and Measuring Equipment (including weighbridges, filling scales)
31. Dispensing Equipment (dispensing scales, nozzles, gas filling systems)
32. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
33. Gas Water Heaters
34. Gas Burners for Industry
35. Gas Boilers
36. Gas Washing Machines and Dryers
37. CNG, LPG, and Cryogenic Hoses, Tubes, Pipes, and Fittings
38. CNG Truck Heads
39. Gas Leak Detectors
40. Gas Air Conditioners
41. Cylinder Refurbishment Equipment
42. Blending Skid/Unit
43. Odorizing Unit
44. Chromatography Unit (GC)
45. LNG Liquefying Equipment, Heat Exchangers, LNG Vaporizers, Regassification Plants, Liquefied CNG Compression Terminals
46. LNG Plant Machinery, Pumps, Compressors, Filters (including Gas Filters), Weighing Machines, Valves Equipment
47. Cryogenic Storage Tanks, Liquefied CNG Conversion Tanks
48. Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing
49. Electrical Equipment, including Cables for LNG processing
50. Steel Plates, Angles, Bars for LNG Processing
51. LNG Related Chemicals
52. Biogas Digesters
53. Biogas Compressors
54. De-sulfurization Units
55. Dryers
56. Distillation Columns for Processing Biofuels
57. Bio-ethanol Refinery Equipment
58. Fermentation Tanks
59. Biofuel-related Chemicals, Enzymes, and Reagents
60. Liquefied Petroleum Gas
61. Compressed Natural Gas
62. Feed Gas
63. Automotive Gas Oil
This initiative reflects the government’s ongoing efforts to navigate the challenges posed by the removal of fuel subsidies, which have led to increased costs of living and product prices across the country.
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