The Nigerian government has exempted fully compressed natural gas (CNG), liquefied petroleum gas (LPG) and electric vehicles from import duty and Value Added Tax (VAT) to incentivize the shift to cleaner transport and reduce the country’s dependence on petrol.The Nigeria Customs Service (NCS) announced this on Thursday in a press statement under the Presidential Gas for Growth Initiative.
The exemptions cover fully CNG-powered vehicles, fully LPG-powered vehicles, battery electric vehicles, and extended-range electric vehicles (EREVs) capable of travelling at least 200 kilometres on electric power. Also eligible are CNG and LPG conversion kits, tricycles and motorcycles certified by the Federal Ministry of Finance, and gas-distribution semi-trailers fitted with CNG, LPG or liquefied natural gas (LNG) storage tanks.Importers must obtain an Import Duty Exemption Certificate (IDEC) from the Ministry of Finance before accessing the incentives and comply with other regulatory requirements.
The government, however, excluded several categories from the tax relief. Hybrid vehicles, dual-fuel CNG/petrol and CNG/diesel vehicles, luxury vehicles valued at $100,000 or more, overseas CNG conversions without factory-fitted systems, non-self-propelled trailers and vehicle spare parts will continue to pay import duty and VAT.“The implementation of these fiscal incentives is intended to support the Federal Government’s broader objectives of reducing transportation and energy costs, encouraging investment in clean energy infrastructure, expanding the adoption of alternative fuel technologies, and strengthening Nigeria’s energy security and environmental sustainability agenda,” Customs said.
The move comes after the federal government introduced a “green tax surcharge” on imported vehicles with engines above 2,000cc which excluded mass transit buses and electric vehicles (EVs).
Imported vehicles with an engine size of 2,000 cubic centimetres (cc) to 3,999cc (engines of 2.0 to 3.9 liters) are subject to a two percent levy while vehicles with an engine size of 4,000cc and above are subject to a four percent levy.“The service urges all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory requirements,” Customs said.
Leave a Reply