FG removes VAT on diesel, CNG, electric vehicles, others to crash prices

Oct. 2, 2024 - Nairametrics

The Federal Government has announced value added tax (VAT) exemptions for various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others, in order to reduce prices. “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

Tax Incentives for Deep Offshore Oil & Gas ProductionIn addition, the Minister also announced the introduction of tax incentives for deep offshore oil operations and gas production, as outlined in the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) “In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.

This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments...