63 Items Exempted From VAT Under New Fiscal Reforms
The Federal Government has announced the exemption of 63 items from Value-Added Tax (VAT), as part of its latest fiscal reforms.
The exemptions are outlined in the official ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.
The announcement follows the recent introduction of fiscal concessions aimed at revitalising Nigeria’s oil and gas sector, as disclosed by the Finance Minister and Coordinating Minister of the Economy, Wale Edun.
The two key incentives unveiled include the VAT modification order and tax reliefs for deep offshore oil and gas production, as per the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
Additionally, the official gazette specifies that the provisions concerning Automotive Gas Oil (AGO) are retroactive, taking effect from October 1, 2023.
President Bola Tinubu may bar revenue-generating agencies from collecting revenues on behalf of the Federal Government as he plans to introduce a single agency—the Nigeria Revenue Service—to handle the task.
This came as the Federal Government instituted a comprehensive set of fresh tax reforms aimed at significantly boosting revenue collection.
In September 2024, FEC approved economic stabilisation bills and proposed 10 changes to spur economic growth.
Here is a full list of the items exempted from VAT:
- CNG/LPG Dual Fuel Vehicles
- Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles
- Parts, and semi-knocked down units (for assembly) of CNG and LPG buses.
- Parts, and semi-knocked down units (for assembly) of Electric Vehicle
- Electric Vehicles
- Electric Vehicles Battery
- Electric Vehicles Charging System
- Electric Vehicle Solar Charging System
- LPG/CNG Conversion Kits
- CNG Cylinders
- CNG Cascades
- CNG Dispensers
- Gas Generators
- CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers
- Steel Pipes
- Steel Valves & Fittings
- SS Tubes & Fittings
- Storage Tanks (all sizes)
- Regulators
- CNG Pumps and Compressors (all types)
- Steel
- Pressure Relief Valves
- Hydraulic press/Rolling machine
- Heat Treatment Equipment
- Liquid Level Guage
- Pumping Housing and Motors
- Regulator Body
- Pressure Guage
- Truck Chassis
- Metering and Measuring Equipment (including weighbridges, and filling scales)
- Dispensing equipment (dispensing scales, nozzles, gas filling systems)
- Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
- Gas water heaters
- Gas burners for industry
- Gas boilers
- Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry.
- CNG, LPG and Cyrogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example, joints, elbows, flanges) of plastics.
- CNG truck heads
- Gas Leak Detectors
- Gas air conditioners
- Cylinder refurbishment equipment
- Blending skid/unit
- Odourizing unit
- Chromatography unit (GC)
- LNG Liquefying Equipment, Heat Exchangers, LNG Vapourizers, Regasification
- Plant, Liquefied CNG Compression Terminals
- LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters),
- Weighing Machines, Valves Equipment
- Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks
- Pipes, Piping Fittings, and Flanges used for Liquefied Natural Gas processing
- Electrical Equipment, including Cables for Liquefied Natural Gas processing
- Steel Plates, Angles, and Bars for Liquefied Natural Gas Processing
- LNG Related Chemicals
- Biogas Digester
- Biogas Compressor
- De-sulphurization units
- Dryer
- Distillation columns for processing biofuels
- Bio-ethanol refinery equipment
- Fermentation Tanks
- Biofuel-related Chemicals, Enzymes and Reagents
- Liquefied Petroleum Gas
- Compressed Natural Gas
- Feed Gas
- Automotive gas oil
