News

FULL LIST: 63 items exempted from VAT under new fiscal reforms by Tinubu

Published

2 weeks ago

October 5, 2024

The Federal Government has announced the exemption of 63 items from Value-Added Tax (VAT), as part of its latest fiscal reforms.

This was revealed by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, via a post on X (formerly Twitter) on Friday.

The exemptions are outlined in the official ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.

The announcement follows the recent introduction of fiscal concessions aimed at revitalising Nigeria’s oil and gas sector, as disclosed by the Finance Minister and Coordinating Minister of the Economy, Wale Edun.

The two key incentives unveiled include the VAT modification order and tax reliefs for deep offshore oil and gas production, as per the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.

Additionally, the official gazette specifies that the provisions concerning Automotive Gas Oil (AGO) are retroactive, taking effect from October 1, 2023.

Earlier, our heritage reporter reported that President Bola Tinubu may bar revenue-generating agencies from collecting revenues on behalf of the Federal Government as he plans to introduce a single agency—the Nigeria Revenue Service—to handle the task.

This came as the Federal Government instituted a comprehensive set of fresh tax reforms aimed at significantly boosting revenue collection.

In September 2024, FEC approved economic stabilisation bills and proposed 10 changes to spur economic growth.

Here is a full list of the items exempted from VAT:
CNG/LPG Dual Fuel Vehicles
Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles
Parts, and semi-knocked down units (for assembly) of CNG and LPG buses.
Parts, and semi-knocked down units (for assembly) of Electric Vehicle
Electric Vehicles
Electric Vehicles Battery
Electric Vehicles Charging System
Electric Vehicle Solar Charging System
LPG/CNG Conversion Kits
CNG Cylinders
CNG Cascades
CNG Dispensers
Gas Generators
CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers
Steel Pipes
Steel Valves & Fittings
SS Tubes & Fittings
Storage Tanks (all sizes)
Regulators
CNG Pumps and Compressors (all types)
Steel
Pressure Relief Valves
Hydraulic press/Rolling machine
Heat Treatment Equipment
Liquid Level Guage
Pumping Housing and Motors
Regulator Body
Pressure Guage
Truck Chassis
Metering and Measuring Equipment (including weighbridges, and filling scales)
Dispensing equipment (dispensing scales, nozzles, gas filling systems)
Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
Gas water heaters
Gas burners for industry
Gas boilers
Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry.
CNG, LPG and Cyrogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example, joints, elbows, flanges) of plastics.
CNG truck heads
Gas Leak Detectors
Gas air conditioners
Cylinder refurbishment equipment
Blending skid/unit
Odourizing unit
Chromatography unit (GC)
LNG Liquefying Equipment, Heat Exchangers, LNG Vapourizers, Regasification
Plant, Liquefied CNG Compression Terminals
LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters),
Weighing Machines, Valves Equipment
Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks
Pipes, Piping Fittings, and Flanges used for Liquefied Natural Gas processing
Electrical Equipment, including Cables for Liquefied Natural Gas processing
Steel Plates, Angles, and Bars for Liquefied Natural Gas Processing
LNG Related Chemicals
Biogas Digester
Biogas Compressor
De-sulphurization units
Dryer
Distillation columns for processing biofuels
Bio-ethanol refinery equipment
Fermentation Tanks
Biofuel-related Chemicals, Enzymes and Reagents
Liquefied Petroleum Gas
Compressed Natural Gas
Feed Gas
Automotive gas oil

News

New Tax Bills Not To Merge Govt Agencies, Cause Job Losses – FIRS

Published

17 mins ago

October 17, 2024

Gloria Ikibah

By Gloria Ikibah

Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, has explained that the four new tax reform bills are meant to combine all scattered tax laws into one, making it easier to manage.

Adedeji who stated this at a meeting with the House of Representatives Committee on Finance, said the bills presented to the National Assembly were not about raising or introducing new taxes, this is even as he also clarified that the reforms will not merge any government agencies or cause job losses.

He said, “We want to harmonize all the tax laws because we have different tax laws scattered in various establishment laws. This leads to multiple taxes because each agency enforces its own tax law.”

The FIRS boss further noted that no agency is more important than another, and each must carry out its duties. This, he said was not good for the economy, which is why President Tinubu wants to combine all the tax laws into one system.

He added, “As we stand today, there is no law regulating or monitoring cryptocurrency. We can’t isolate ourselves from global developments, so one of the goals is to organize the fiscal framework efficiently.”

Adedeji also highlighted that the reform will help government spending. “For example, before the Treasury Single Account (TSA), the government could have money in one bank but still borrow from another. TSA now gives a clear picture of where government funds are”.

He further stressed the need for transparency in revenue collection, and assured that the government is not looking to tax poverty or inflation.

“We want the tax laws to be simple so that people can comply easily.

“The reforms will also update old tax laws to fit current realities. We’re still using a tax integrity test from 1939 when there was no internet or online shopping. These bills aim to align Nigeria with international standards and attract investment.”

“We will never increase the rate or number of taxes. The president believes in harmonizing the taxes we have, with fewer than 20 types of taxes”, he added.

He stated that the proposed Nigeria Tax Act will put all tax laws in one book, reducing the number of taxes, citing the example of the Education Tax Act, which collects a percentage for various funds, and said compliance has been an issue and the new act will make this simpler.

“The Nigeria Tax Administration Act will harmonize the administration of taxes, ensuring a uniform process so people don’t have to navigate different systems”, he noted.

Adedeji also discussed renaming the FIRS to Nigeria Revenue Service to reflect its role in collecting taxes for both the federal and state governments, as well as from international companies like Google and Jumia.

“The final reform is the establishment of a Joint Revenue Board to create a legal framework for resolving conflicts between states and local governments over revenue collection.

“These tax reforms will stimulate the economy and lay a foundation for the type of economy the president envisions”, he concluded.

Chairman of the Committee, James Faleke, earlier in his remarked that the meeting was to give members firsthand information on the necessity of the bills ahead of their second reading.

News

Parents Of 2-year Old Boy Killed By NDLEA Demand N2b Compensation

Published

21 mins ago

October 17, 2024

Gloria Ikibah

By Gloria Ikibah

The parents of a two-year-old boy, Ivan Omhonria, who was shot and killed, and his younger brother, Eromonsele, who was shot in the eye by officers of the Nigerian Drug Law Enforcement Agency (NDLEA), are demanding N2 billion in compensation from the Agency.

Naijablitznews.com recalled that the incident took place in Delta State in 2023, when Eromonsele, who survived, was only one year old.

The father, Fidelis, who appeared before the House of Representatives Committee on Public Petitions, expressed bitterness that the NDLEA has neglected them since the tragedy occurred over a year ago. He also disclosed that Eromonsele’s health has been getting worse due to a lack of proper medical care.

The family had filed a petition against the NDLEA, and the first hearing was held on Wednesday, at the National Assembly Complex in Abuja.

During the hearing, NDLEA’s lawyer, Muniat Adeleye, stated that the Agency had agreed to pay the family N25 million, with N5 million already sent as the first installment, and that the payment was to be spread over five months.

Adeleye expressed surprise at the petition, and said, “The Agency did not expect it, as the matter had already been resolved with an agreement between both parents.”

However, when asked for the signed agreement, Adeleye, who is the Assistant Director of Prosecution and Legal Services, admitted that it had not been signed. This upset the Committee, which demanded that NDLEA Chairman, Brigadier General Buba Marwa (rtd), appear at the next hearing.

Fidelis denied any such agreement, saying, “I was shocked to hear about an agreement just now. I’m not a party to any agreement. Yes, the NDLEA Chairman called me after the incident and said he was sorry and that he would send me a token from his personal funds. He didn’t mention an amount, but later, I received N5 million in my wife’s account. That’s all. So where did the N25 million agreement come from?”

The family’s lawyer added, “We demanded N2 billion in compensation, but the NDLEA never responded. They ignored us with arrogance. A life was lost, and another child’s future is at risk because of the eye injury. We want the House to make sure the NDLEA takes responsibility and compensates the family properly.”

Chairman of the Committee, Rep. Mike Etaba, expressed the seriousness of the matter, “This is a grave issue. Nigerians and the world are watching us. At the next hearing, the NDLEA head must appear in person to explain what steps he has taken to help this family. The money sent was just a token to cover some medical costs, not part of any agreement. No one should claim there was a N25 million agreement.”

The matter was adjourned to October 22, 2024.

News

Companies Blame Host Communities For Oil Theft, Pipeline Vandalism

Published

1 hour ago

October 17, 2024

Gloria Ikibah

…seek intervention of NASS for legal framework

By Gloria Ikibah

Aieto and Nigeria Agip (now Oando) Oil companies have given different submissions before the House of Representatives’ Environment Committee, during the ongoing investigative hearing into oil theft, pipeline vandalism, and their environmental impact in oil-producing states on Tuesday in Abuja.

The hearing was occasioned by a lot of petitions from host communities affected by Aieto’s and Oando’s operations, who drew special attention on the environmental and economic concerns caused by oil spills and sabotage.

Both companies stressed the need for legislative intervention by the House of Representatives to create legal framework that discourages acts harmful to the nation’s economy and ecosystem.

Oando Team Lead, Philip Akuduro, blamed a significant portion of oil spillage on host communities, citing theft and vandalism as primary causes.

He stated, “Data by Oando on Burutu in Southern Ijaw revealed that virtually over 90% of oil theft and pipeline vandalism were perpetrated by members of the host communities, whose increasing penance and capacity to steal from the common well knows no bounds.”

“Host communities are individually and collectively sabotaging efforts of oil companies to minimize incidences of spillages in their area. Our operations, largely covering onshore and marshy areas, are easily accessible to vandals. Their activities result in spillage and pollution, as oil spills are swiftly spread by strong underwater currents.”

But members of the committee, mostly from the Niger Delta region, led by Chairman Rep. Julius Pondi (representing Ijaw South), vehemently were against the generalized accusations.

They particularly objected to the terms “increasing appetite and capacities for theft,” and therefore urged Oando to withdraw the statement, which the company did spot-on.

Chief Operating Officer of Aieto, Ewarezi Useh, who emphasised the importance of maintaining a good relationship with host communities, however noted that vested interests often lead to conflicts between oil companies and local communities.

Useh credited such clashes to the significant drop in production to 700,000 barrels per day in 2018, which later improved through the efforts of combined security stakeholders.

Rep. Julius Pondi reaffirmed the commitment of the committee to address the root causes of environmental degradation and pollution caused by oil company operations.

He disclosed that there will be an oversight visit to Oando’s operation sites in Delta State to verify their claims of cleaning up the aftermath of a May 2024 oil spill in the area.