Full List: FG Exempts 63 Items from VAT

The Federal Government has announced a significant move to exempt 63 items from Value-Added Tax (VAT), a decision intended to alleviate financial burdens on various sectors, particularly in the oil and gas industry. This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, via a post on X.

The exemption is formalized in the ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024. This announcement follows the recent introduction of fiscal incentives by Finance Minister Wale Edun aimed at revitalizing the oil and gas industry and boosting Nigeria’s upstream and downstream sectors.

Key provisions of the VAT modification order, particularly regarding Automotive Gas Oil (AGO), have been backdated to commence on October 1, 2023.

Full List of VAT-Exempt Items:

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. 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 Gauge
26. Pumping Housing and Motors
27. Regulator Body
28. Pressure Gauge
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)
37. Household or laundry-type washing machines, including machines that both wash and dry
38. CNG, LPG and Cryogenic Hoses, Tubes, Pipes, and Hoses, and Fittings thereof (e.g., joints, elbows, flanges) of plastics
39. CNG Truck Heads
40. Gas Leak Detectors
41. Gas Air Conditioners
42. Cylinder Refurbishment Equipment
43. Blending Skid/Unit
44. Odourizing Unit
45. Chromatography Unit (GC)
46. LNG Liquefying Equipment, Heat Exchangers, LNG Vapourizers, Regasification Plants, Liquefied CNG Compression Terminals
47. LNG Plant, Machinery, Pumps, Compressors, Filters (including Gas Filters), Weighing Machines, Valve Equipment
48. Cryogenic Storage Tanks, Liquefied CNG Conversion Tanks
49. Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing
50. Electrical Equipment, including Cables for Liquefied Natural Gas processing
51. Steel Plates, Angles, Bars for Liquefied Natural Gas Processing
52. LNG Related Chemicals
53. Biogas Digesters
54. Biogas Compressors
55. De-sulphurization Units
56. Dryers
57. Distillation Columns for Processing Biofuels
58. Bio-ethanol Refinery Equipment
59. Fermentation Tanks
60. Biofuel Related Chemicals, Enzymes, and Reagents
61. Liquefied Petroleum Gas
62. Compressed Natural Gas
63. Feed Gas
64. Automotive Gas Oil

This initiative by the Federal Government aims to reduce costs and stimulate growth in critical sectors, especially in light of recent economic challenges arising from the removal of fuel subsidies.