The Nigeria Customs Service (NCS) has exempted the Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG) also known as cooking gas, Electricity Vehicle (EV) from 100 per cent payment of import duty and Value Added Tax (VAT).
This was contained in the additional guidelines on Fiscal Incentives Under the Presidential Gas for Growth Initiative, which the Service issued on Friday in Abuja.
National Public Relations Officer, Abdullahi Maiwada made the disclosure in a press statement.
He said, “Pursuant to the approved fiscal incentives, the importation of specified environmentally friendly and gas-powered vehicles, equipment, and components shall enjoy exemption from the payment of Import Duty and Value Added Tax (VAT).
“The approved categories include Compressed Natural Gas (CNG) fuel vehicles (100 per cent CNG), Liquefied Petroleum Gas (LPG) fuel vehicles (100 per cent LPG), Pure Electric Vehicles (100 per cent Electric), Extended Range Electric Vehicles (EREVs) with a minimum pure electric range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorbikes certified for resale by the Federal Ministry of Finance, as well as semi-trailers configured with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.”
NCS added that importers seeking to benefit from these incentives are required to obtain an Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of eligible items.
According to the statement, the approved fiscal framework provides that some specific categories of vehicles and related items shall remain subject to the payment of Import Duty and VAT.
These include Hybrid Electric Vehicles (such as Electric/Petrol and Electric/Diesel variants), dual-fuel Internal Combustion Engine (ICE) vehicles configured for CNG/Petrol or CNG/Diesel operations, luxury vehicles valued at USD 100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-driven or operated under their own mechanical drive, and spare parts of all kinds.
Maiwada said “in furtherance of President Bola Ahmed Tinubu, commitment to promoting cleaner energy alternatives and to enhance the adoption of sustainable transportation solutions, the Nigeria Customs Service (NCS) announces the implementation of additional guidelines issued by the Federal Ministry of Finance for the Fiscal Incentives under the Presidential Gas for Growth Initiative”.
The statement reads in part: “The implementation of these fiscal incentives is intended to support the Federal Government’s broader objectives of reducing transportation and energy costs, encouraging investment in clean energy infrastructure, expanding the adoption of alternative fuel technologies, and strengthening Nigeria’s energy security and environmental sustainability agenda.
“The Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, and his management team, remains committed to the effective and transparent implementation of these incentives and urges all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory requirements.”
(Ripples)