FG has commenced fiscal policy reform implementation with VAT removal from 63 items.
NewsOnline Nigeria reports that President Bola Tinubu’s Federal Government has officially exempted 63 items from Value-Added Tax (VAT) as part of its fiscal policy reforms.
This announcement was made by Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, via a post on X.
The details of the exemption are included in the official gazette for the ‘Value Added Tax (Modification) Order, 2024,’ which is dated September 3, 2024.
This decision follows the recent unveiling of concessions by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, aimed at revitalizing the oil and gas sector to enhance Nigeria’s upstream and downstream operations.
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The minister revealed two fiscal incentives: the VAT modification order for 2024 and a notice of tax incentives related to deep offshore oil and gas production, aligning with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.
According to the gazette, the provisions regarding Automotive Gas Oil (AGO) will take effect retroactively from October 1, 2023.
Here is a full list of the items exempted from VAT:
CNG/LPG Dual Fuel Vehicles
Dedicated LPG Vehicles and CNG/LPG
Dual Fuel Vehicles
Parts, and semi-knocked down units (for assembly) of CNG and LPG Buse.
Parts, and semi-knocked down units (for assembly) of Electric Vehicle
Electric Vehicles
Electric Vehicles Battery
Electric Vehicles Charging System
Electric Vehicle Solar Charging System
LPG/CNG Conversion Kits
CNG Cylinders
CNG Cascades
CNG Dispensers
Gas Generators
CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers
Steel Pipes
Steel Valves & Fittings
SS Tubes & Fittings
Storage Tanks (all sizes)
Regulators
CNG Pumps and Compressors (all types)
Steel
Pressure Relief Valves
Hydraulic press/Rolling machine
Heat Treatment Equipment
Liquid Level Guage
Pumping Housing and Motors
Regulator Body
Pressure Guage
Truck Chassis
Metering and Measuring Equipment (including weighbridges, 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
Gas burners for industry
Gas boilers
Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry.
CNG, LPG and Cyrogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example,joints, elbows, flanges) of plastics
CNG truck heads
Gas Leak Detectors
Gas air conditioners
Cylinder refurbishment equipment
Blending skid/unit
Odourizing unit
Chromatography unit (GC)
LNG Liquefying Equipment, Heat Exchangers,LNG Vapourizers, Regassification Plant, Liquefied CNG Compression Terminals
LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves Equipment
Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks
Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing
Electrical Equipment, including Cables for Liquefied Natural Gas processing
Stell Plates, Angles, Bars for Liquefied Natural Gas Processing
LNG Related Chemicals
Biogas Digester
Biogas Compressor
De-sulphurization units
Dryer
Distillation columns for processing biofuels
Bio-ethanol refinery equipment
Fermentation Tanks
Biofuel related Chemicals, Enzymes and Reagents
Liquefied Petroleum Gas
Compressed Natural Gas
Feed Gas
Automotive gas oil
