BREAKING: FG Finally Commences Fiscal Policy Reform Implementation In Nigeria

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.

 

ALSO: FG Accused of Selective Payment of ₦70,000 Minimum Wage Among Federal Workers

 

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