FG Removes VAT On Cooking Gas
LAGOS – The Federal Government has confirmed the removal of Value Added Tax, VAT on Liquefied Petroleum Gas (LPG) in the country.
Babatunde Fowler, the Chairman, Federal Inland Revenue Service (FIRS), who disclosed this at the stakeholders’ meeting with Vice President Yemi Osinbanjo, in Abuja, said the measure was aimed at growing the LPG sector as well as attracting more investors and users in the country.
Speaking on the development, Mr. Nuhu Yakubu, President, NLPGA, said: “The Nigeria LP Gas Association is the umbrella body of all stakeholders in the LP Gas sector in Nigeria. The primary objective of the Association is to promote the use of liquefied petroleum gas in Nigeria at affordable costs.
“It also aims at protecting the interests of the LP Gas industry and the entire Nigerian socio-economic environment at large, through public policy advocacy, creation and facilitation of commercial and industrial opportunities, provision of business development services and observance of the highest standard of operational and business ethics.
“The association represents the opinion of the stakeholders on all matters, which impact on the investment environment and the Nigerian economy as a whole.”
Stakeholders in the gas sector said LPG business will likely be boosted in the country on the strength that the Nigerian LNG Limited, a major local producer has indicated interest to increase supply.
According to the company, “NLNG commenced the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, to the domestic market in 2007 when refineries became challenged and supply was grossly inadequate. Since then, the issue of inadequate supply has become a thing of the past.
“The intervention, which is in line with company’s vision of helping to build a better Nigeria, has significantly contributed to the stimulation and development of the domestic LPG market in Nigeria and has effectively brought down the price of cooking gas from over N7, 000 in 2007 to less than N3, 500 per 12.5kg cylinder today.
“NLNG is committed to delivering 350,000 tonnes of LPG into the Nigerian market annually and has signed Sales and Purchase Agreements (SPAs) with fifteen off-takers (all Nigerian companies) for the lifting of LPG for the domestic market.”