Gas generators, CNG/LPG vehicles… 63 items exempted from VAT

The federal government has exempted 63 items from value-added tax (VAT).

According to a post on X by Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, on Friday, the exempted items are contained in an official gazette for the ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.

On Wednesday, Wale Edun, minister of finance and coordinating minister of the economy, announced the introduction of concessions aimed at revitalising the oil and gas industry to ensure a boost in Nigeria’s upstream and downstream sectors.

Edun unveiled two major fiscal incentives.

The incentives included VAT modification order 2024 and notice of tax incentives for deep offshore oil and gas production, in accordance with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.

In the official gazette, the federal government said the provisions of “this order, as they relate to Automotive Gas Oil (AGO) shall be deemed to have commenced on the 1st day of October, 2023”.

Here is a full 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 Buse.
4. Parts, and semi-knocked down units (for assembly) of Electric Vehicle
5. Electric Vehicles
6. Electric Vehicles Battery
7. Electric Vehicles Charging System
8. Electric Vehicle Solar Charging System
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.  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 machine
24. Heat Treatment Equipment
25. Liquid Level Guage
26. Pumping Housing and Motors 
27. Regulator Body
28. Pressure Guage
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 which both wash and dry.
37. CNG, LPG and Cyrogenic Hoses Tubes, pipes and hoses, 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. Odourizing unit
44. Chromatography unit (GC)
45. LNG Liquefying Equipment, Heat Exchangers,LNG Vapourizers, Regassification Plant, Liquefied CNG Compression Terminals
46. LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves Equipment 
47. Cyrogenic 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. Stell Plates, Angles, Bars for Liquefied Natural Gas Processing
51. LNG Related Chemicals 
52. Biogas Digester 
53. Biogas Compressor
54. De-sulphurization units
55.  Dryer 
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