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The Oil and Gas Service Providers Association of Nigeria (OGSPAN) has again, called on the federal government not to implement its plan to impose Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
In a statement, OGSPAN said the planned imposition of VAT on LPG would discourage demand and utilisation of the energy source and stifle investments and growth of the sub-sector.
The statement signed by the National President of OGSPAN, Mr. Colman Obasi, warned that the return of VAT on LPG would negate the Decade of Gas policy of the federal government. Obasi noted that the stakeholders in the sector were delighted when the federal government previously excluded operators in the LPG sector from paying the VAT but that they were shocked to hear of the plan to impose the VAT on the product again. “We were even more delighted when it (federal government) declared January 1, 2021, to December 31, 2030, as ‘The Decade of Gas Development for Nigeria’ with emphasis on LPG.