FG Slashes Cooking Gas Prices, Announces Exemption from VAT & Customs Duty

FG Slashes Cooking Gas Prices, Announces Exemption from VAT & Customs Duty

The Federal Government of Nigeria has granted a waiver on customs duty and value-added tax (VAT) for the importation of liquefied petroleum gas (LPG) and its equipment, with immediate efect. This strategic decision, was disclosed in a letter dated November 28, 2023, by the Ministry of Finance, with the objective to drive down the cost of cooking gas nationwide.

The exemption aligns with President Bola Tinubu’s pledge towards enhancing Nigeria’s investment climate and fostering clean cooking practices. The minister of finance, Wale Edun, emphasized the significance of this directive in increasing the supply of LPG to meet local demand and reducing market prices.

The specified HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 for LPG importation will now incur a 0% duty rate and 0% VAT rate. The Ministry has urged the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS) to promptly comply with the directive, pending official gazetting.

Furthermore, the NCS is instructed to withdraw debit notes issued to petroleum marketers who imported LPG using specified codes from August 26, 2019, to the present date, aligning with a previous presidential directive dated July 29, 2022. This move is poised to positively impact both consumers and the clean energy sector.

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