The Federal Government has announced that 63 items have been exempted from Value-Added Tax (VAT).
Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made this announcement in a post on X on Friday, stating that the exempted items are detailed in an official gazette for the ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.
This announcement follows two days after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, introduced concessions aimed at revitalizing the oil and gas industry to enhance Nigeria’s upstream and downstream sectors.
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The minister unveiled two key fiscal incentives: the VAT modification order 2024 and a notice of tax incentives for deep offshore oil and gas production, as outlined in the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
According to the official gazette, the provisions related to Automotive Gas Oil (AGO) are set to commence on October 1, 2023.
Here is the complete list of the items exempted from VAT:
1. CNG/LPG Dual Fuel Vehicles
2. Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles
3. Parts and semi-knocked down units (for assembly) of CNG and LPG buses
4. Parts and semi-knocked down units (for assembly) of Electric Vehicles
5. Electric Vehicles
6. Electric Vehicle Batteries
7. Electric Vehicle Charging Systems
8. Electric Vehicle Solar Charging Systems
9. LPG/CNG Conversion Kits
10. CNG Cylinders
11. CNG Cascades
12. CNG Dispensers
13. Gas Generators
14. CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers)
15. Steel Pipes
16. Steel Valves & Fittings
17. Stainless Steel Tubes & Fittings
18. Storage Tanks (all sizes)
19. Regulators
20. CNG Pumps and Compressors (all types)
21. Steel
22. Pressure Relief Valves
23. Hydraulic Press/Rolling Machine
24. Heat Treatment Equipment
25. Liquid Level Gauges
26. Pumping Housing and Motors
27. Regulator Bodies
28. Pressure Gauges
29. Truck Chassis
30. Metering and Measuring Equipment (including weighbridges, filling scales)
31. Dispensing Equipment (dispensing scales, nozzles, gas filling systems)
32. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
33. Gas Water Heaters
34. Gas Burners for Industry
35. Gas Boilers
36. Gas Washing Machines and Dryers (launderettes) Household or laundry-type washing machines, including machines that both wash and dry
37. CNG, LPG, and Cryogenic Hoses, tubes, pipes, and fittings thereof (for example, joints, elbows, flanges) of plastics
38. CNG Truck Heads
39. Gas Leak Detectors
40. Gas Air Conditioners
41. Cylinder Refurbishment Equipment
42. Blending Skid/Unit
43. Odorizing Unit
44. Chromatography Unit (GC)
45. LNG Liquefying Equipment, Heat Exchangers, LNG Vaporizers, Regasification Plant, Liquefied CNG Compression Terminals
46. LNG Plant, Machinery, Pumps, Compressors, Filters (including gas filters), Weighing Machines, Valves Equipment
47. Cryogenic Storage Tanks, Liquefied CNG Conversion Tanks
48. Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing
49. Electrical Equipment, including Cables for Liquefied Natural Gas processing
50. Steel Plates, Angles, Bars for Liquefied Natural Gas Processing
51. LNG-Related Chemicals
52. Biogas Digesters
53. Biogas Compressors
54. De-sulphurization Units
55. Dryers
56. Distillation Columns for Processing Biofuels
57. Bio-ethanol Refinery Equipment
58. Fermentation Tanks
59. Biofuel-Related Chemicals, Enzymes, and Reagents
60. Liquefied Petroleum Gas
61. Compressed Natural Gas
62. Feed Gas
63. Automotive Gas Oil
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