The Nigeria Customs Service (NCS) has begun implementing new fiscal guidelines that allow specified compressed natural gas (CNG), liquefied petroleum gas (LPG) and electric vehicles to enter Nigeria without payment of Import Duty and Value Added Tax (VAT).
The exemption, issued under the Federal Government’s Presidential Gas for Growth Initiative, covers vehicles and equipment that meet the conditions set by the Federal Ministry of Finance.
However, the exemption does not apply to all alternative-fuel vehicles, as hybrid vehicles, some dual-fuel vehicles, luxury vehicles valued at $100,000 and above, and spare parts will continue to attract Import Duty and VAT.
According to the Comptroller-General of Customs, Bashir Adewale Adeniyi through the National Public Relations Officer, Deputy Comptroller of Customs, Abdullahi Maiwada on Friday the vehicles and equipment covered by the exemption 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 oer 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.”
Maiwada said importers seeking to use the exemption must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance.
He noted that they must also meet other regulatory requirements for importing the eligible vehicles, equipment and components.
The NCS further noted that despite the requirement met by the importers, some vehicle categories would remain subject to Import Duty and VAT despite the new incentives.
These according to the NCS 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.”
He said the NCS guidelines are part of the Federal Government’s efforts to encourage the use of alternative fuels and reduce dependence on conventional petrol and diesel vehicles.
The NCS added that the incentives seek to reduce transportation and energy costs, attract investment in clean-energy infrastructure and improve Nigeria’s energy security.
The NCS urged importers, licensed customs agents and other operators involved in the importation of eligible goods to comply with the new guidelines.
(The Whistler)