FULL LIST: FG Exempts Gas Generators, CNG/LPG Vehicles, And 61 Other Items From VAT

The Federal Government of Nigeria has exempted 63 items from the Value-Added Tax (VAT), a move aimed at easing the burden on citizens and businesses, particularly following the fuel subsidy removal, which had significantly increased living costs. This announcement was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a post on X (formerly Twitter) on Friday.

The exemptions are detailed in the official gazette for the “Value Added Tax (Modification) Order, 2024,” dated September 3, 2024.

The announcement comes shortly after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, introduced fiscal incentives designed to revitalize the oil and gas sector. These measures include the VAT modification order and tax incentives for deep offshore oil and gas production, under the “Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.”

The federal government emphasized that the provisions related to Automotive Gas Oil (AGO) under this order are retroactively effective from October 1, 2023.

Full List of VAT-Exempted Items:

1. CNG/LPG Dual Fuel Vehicles

2. Dedicated LPG 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, Bridgers, fixed axle, and semi-trailers)

15. Steel Pipes

16. Steel Valves & Fittings

17. SS 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 Machines

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 and household types)

37. CNG, LPG, and Cryogenic Hoses

38. Tubes, Pipes, and Fittings (joints, elbows, flanges of plastics)

39. CNG Truck Heads

40. Gas Leak Detectors

41. Gas Air Conditioners

42. Cylinder Refurbishment Equipment

43. Blending Skids/Units

44. Odorizing Units

45. Chromatography Units (GC)

46. LNG Liquefying Equipment

47. LNG Vaporizers

48. Regasification Plants

49. Liquefied CNG Compression Terminals

50. LNG Plants, Machinery, Pumps, Compressors, Filters (Including Gas Filters), and Weighing Machines

51. Cryogenic Storage Tanks

52. Liquefied CNG Conversion Tanks

53. Pipes, Piping Fittings, Flanges for LNG processing

54. Electrical Equipment (including cables for LNG processing)

55. Steel Plates, Angles, Bars for LNG Processing

56. LNG-Related Chemicals

57. Biogas Digesters

58. Biogas Compressors

59. Desulphurization Units

60. Dryers

61. Distillation Columns for Biofuel Processing

62. Bioethanol Refinery Equipment

63. Fermentation Tanks

64. Biofuel-Related Chemicals, Enzymes, and Reagents

65. Liquefied Petroleum Gas (LPG)

66. Compressed Natural Gas (CNG)

67. Feed Gas

68. Automotive Gas Oil (AGO)

These VAT exemptions are part of the government’s strategy to lessen the economic burden on citizens and boost key industries, especially the oil and gas sectors. The exemptions are expected to stimulate economic growth, encourage cleaner energy adoption, and reduce operational costs for businesses reliant on the listed items.