Prices of Diesel to rise as Customs begins VAT collection

• The Nigeria Customs Service has begun collecting Value Added Tax (VAT) on Automated Gas Oil (diesel) imports based on the VAT Modification Order 2021.
• Only petroleum products falling under HS Code 2709.00.00.00 and HS Code 2710.19.12.00 are exempted from VAT.
• AGO falls under HS Code 2710.19.21.00 and is not exempted from VAT. Diesel suppliers have expressed displeasure over the new directive, stating that it will increase their cost of doing business and affect their profit margins.
• They have urged the government to exempt diesel from paying VAT and focus on improving local refining capacity instead.

Source Zawya