No More Taxes: CNG, Diesel, Electric Vehicles, 60 Other Items Exempted From VAT

• A total of 63 products, according to the federal government, are not subject to value-added tax
• According to the Chairman of the Presidential Committee, the list is contained in an official gazette
• Some of the affected items are gas generator, CNG cylinder, electric vehicle, steel pipes and others

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Federal Government recently announced that 63 items have been exempted from Value-Added Tax (VAT).

Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, disclosed this in a post on X on Friday.

He said the exempted items are contained in an official gazette for the ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.

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The full list of the items exempted from VAT has been highlighted as follows:

1. CNG/LPG Dual Fuel Vehicles
2. Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles
3. Parts, and semi-knocked down units (for assembly) of CNG and LPG Buse.
4. Parts, and semi-knocked down units (for assembly) of Electric Vehicle
5. Electric Vehicles
6. Electric Vehicles Battery
7. Electric Vehicles Charging System
8. Electric Vehicle Solar Charging System
9. LPG/CNG Conversion Kits
10. CNG Cylinders.
11. CNG Cascades
12. CNG Dispensers
13. Gas Generators
14. CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers
15. Steel Pipes
16. Steel Valves & Fittings
17. SS Tubes & Fittings
18. Storage Tanks (all sizes)
19. Regulators
20. CNG Pumps and Compressors (all types)
21. Steel
22. Pressure Relief Valves
23. Hydraulic press/Rolling machine
24. Heat Treatment Equipment
25. Liquid Level Guage
26. Pumping Housing and Motors
27. Regulator Body
28. Pressure Guage
29. Truck Chassis
30. Metering and Measuring Equipment (including weighbridges, filling scales)
31. Dispensing equipment (dispensing scales, nozzles, gas filling systems)
32. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
33. Gas water heaters
34. Gas burners for industry
35. Gas boilers
36. Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry.
37. CNG, LPG and Cyrogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example,joints, elbows, flanges) of plastics.
38. CNG truck heads
39. Gas Leak Detectors
40. Gas air conditioners
41. Cylinder refurbishment equipment
42. Blending skid/unit
43. Odourizing unit
44. Chromatography unit (GC)
45. LNG Liquefying Equipment, Heat Exchangers,LNG Vapourizers, Regassification Plant, Liquefied CNG Compression Terminals
46. LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves Equipment
47. Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks
48. Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing
49. Electrical Equipment, including Cables for Liquefied Natural Gas processing
50. Stell Plates, Angles, Bars for Liquefied Natural Gas Processing
51. LNG Related Chemicals
52. Biogas Digester
53. Biogas Compressor
54. De-sulphurization units
55. Dryer
56. Distillation columns for processing biofuels
57. Bio-ethanol refinery equipment
58. Fermentation Tanks
59. Biofuel related Chemicals, Enzymes and Reagents
60. Liquefied Petroleum Gas
61. Compressed Natural Gas
62. Feed Gas
63. Automotive gas oil

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Manufacturers, farmers, SMEs to stop paying withholding tax

Legit.ng reported that to lessen the tax burden on enterprises, the federal government has approved exempting manufacturers, farmers, and small businesses from paying withholding tax.

Important modifications to the previous tax system were also implemented, including lower rates for companies with narrow profit margins and steps to prevent tax cheating.

Income tax can be collected in advance through the use of withholding tax, which is withheld at rates that vary from 5% to 10% depending on the transaction.

Source: Legit.ng