FG Removes VAT On Cooking Gas

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.”

Subscribe ToNairalaw News!