The Nigeria Customs Service (NCS) on Friday issued fresh guidelines outlining the categories of vehicles and equipment that qualify for import duty and Value Added Tax (VAT) exemptions under the Federal Government’s Presidential Gas for Growth Initiative.
The guidelines, issued by the Federal Ministry of Finance and announced by the Customs Service also specify the categories of vehicles and products that remain ineligible for the tax incentives, providing greater clarity for importers and other stakeholders.
According to the NCS’ statement issued by Spokesperson Dr Abdullahi Maiwada, the duty and VAT waivers apply to the importation of 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, pure electric vehicles, and Extended Range Electric Vehicles (EREVs) with a minimum electric driving range of 200 kilometres.
The incentives also cover CNG and LPG conversion kits for petrol and diesel-powered vehicles, tricycles and motorcycles certified for resale by the Federal Ministry of Finance, as well as semi-trailers equipped with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
To qualify for the incentives, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable regulatory requirements.
The Customs Service, however, clarified that the waivers do not extend to hybrid electric vehicles powered by electric and petrol or diesel engines, dual-fuel internal combustion engine vehicles designed to run on CNG and petrol or diesel, luxury vehicles valued at $100,000 and above, or CNG vehicles converted overseas without factory-fitted CNG systems.
Also excluded from the incentives are semi-trailers and flatbeds that are not self-propelled, while all categories of spare parts will continue to attract the applicable import duty and VAT.
The Service said the additional guidelines are intended to facilitate the implementation of the fiscal incentives approved by the Federal Government to encourage the transition to cleaner energy, lower transportation and energy costs, attract investment in alternative fuel infrastructure, and strengthen Nigeria’s energy security.
It reaffirmed its commitment to the transparent implementation of the policy under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, urging importers, licensed customs agents and other operators in the trade value chain to comply with the guidelines.
