As part of its latest fiscal reforms, the Federal Government has exempted 63 items from Value-Added Tax (VAT).
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele revealed this via a post on X (formerly Twitter) on Friday.
Oyedele said the exemptions are outlined in the official ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.
The announcement follows the recent introduction of fiscal concessions aimed at revitalizing Nigeria’s oil and gas sector, as disclosed by the Finance Minister and Coordinating Minister of the Economy, Wale Edun.
The key incentives unveiled include the VAT modification order and tax reliefs for deep offshore oil and gas production, as per the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
Also, the official gazette specifies that the provisions concerning Automotive Gas Oil (AGO) are retroactive, taking effect from October 1, 2023.
This development came as the Federal Government instituted a comprehensive set of fresh tax reforms to significantly boost revenue collection.
In September 2024, the Federal Economic Council (FEC) approved proposed 10 changes to spur economic growth.
Among the list of the items exempted from VAT are:
·Dedicated LPG vehicles and CNG/LPG dual-fuel vehicles
·Electric vehicle battery
·Electric vehicle charging system
·Electric Vehicle Solar Charging System
·LPG/CNG Conversion Kits
·CNG Cylinders
·Gas Generators
·CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers
·Steel Pipes
·Storage Tanks (all sizes)
·CNG Pumps and Compressors (all types)
·Pressure Relief Valves
·Hydraulic press/Rolling machine
·Heat Treatment Equipment
·Liquid Level Gauge
·Pumping Housing and Motors
·Metering and Measuring Equipment (including weighbridges, and filling scales)
·Dispensing equipment (dispensing scales, nozzles, gas filling systems)
·Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
·Gas water heaters
·CNG, LPG and Cryogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example, joints, elbows, flanges) of plastics.
·Gas Leak Detectors
·Gas air conditioners
·Cylinder refurbishment equipment
·Electrical Equipment, including Cables for Liquefied Natural Gas processing
·LNG Related Chemicals
·Biogas Digester
·Biogas Compressor
·De-sulphurization units
·Distillation columns for processing biofuels
·Liquefied Petroleum Gas
·Compressed Natural Gas
·Feed Gas and Automotive gas oil, among others.
