Diesel providers in Nigeria are to pay value-added-tax on any diesel or automotive gas oil (AGO) imported into the nation, Nairametrics reported.
The report cited a letter sent to diesel suppliers by MBA Musa IN, Assistant Comptroller-General of Tariff and Trade, on behalf of the Deputy Comptroller-General of Tariff and Trade.
According to the report, VAT will be paid for all future importations of the product into the country in compliance with the VAT Modification Order 2021.
“I am directed to forward a letter from Federal Inland Revenue Service on the above subject matter. The VAT Modification order 2021 only exempts Petroleum products of HS codes 2709.00.00.00 – 2710.19.12.00 from payment of VAT. AGO or Diesel falls classifiable under HS Code 2710.19.21.00 and is not exempted from paying VAT,” the letter read.
“Subsequent upon the above, all future importations of the product should assess and pay VAT at the point of entry into the country.”
“Also note that AGO or Diesel are not exempted from destination inspection or import guidelines and as such are expected to process Form M and PAAR as well as make declarations appropriately in the NICIS II system.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.