By Oluwakemi Kindness
The Nigeria Customs Service has clarified the categories of clean-energy vehicles and equipment eligible for Import Duty and Value Added Tax exemptions under the Federal Government’s Presidential Gas for Growth Initiative.
Under the new guidelines, on friday 100 per cent CNG vehicles, 100 per cent LPG vehicles and pure electric vehicles will be exempt from Import Duty and VAT.
Extended Range Electric Vehicles (EREVs) will also qualify, provided they have a minimum pure-electric range of 200 kilometres.
CNG and LPG conversion kits for petrol and diesel vehicles are also covered by the exemptions.
However, hybrid vehicles are excluded from the tax relief.
The guidelines are contained in a statement issued on Friday by the National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, on behalf of the Comptroller-General of Customs, Bashir Adewale Adeniyi.
He said electric/petrol and electric/diesel hybrid vehicles, as well as dual-fuel CNG/petrol and CNG/diesel vehicles, will continue to attract Import Duty and VAT.
Luxury vehicles valued at $100,000 and above are also excluded from the incentives.
The exemption will equally not apply to vehicles converted to CNG overseas where the vehicles were not factory-fitted with CNG capability.
Customs further clarified that spare parts of all kinds remain subject to Import Duty and VAT.
Importers seeking to benefit from the incentives must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance.
They are also required to comply with all applicable regulatory requirements governing the importation of eligible vehicles, equipment and components.
The Service said the incentives are designed to reduce transportation and energy costs, encourage investment in clean-energy infrastructure and promote the adoption of alternative fuel technologies.
The initiative is also expected to support the Federal Government’s broader energy security and environmental sustainability objectives.
Customs urged importers, licensed customs agents and other stakeholders to ensure strict compliance with the new guidelines.
