Price Hike In Cooking Gas Inevitable As FG Implements 7.5% Imports Tax

The amount at which cooking gas is purchased is now likely to be increased as the Federal Government has implemented a 7.5 per cent tax on imported Liquefied Petroleum Gas.

The cost of the commodity has over time fluctuated for years but with the tax implementation, there are reports of a leap by over 100 per cent within a period of eight months.Price Hike In Cooking Gas Inevitable As FG Implements 7.5% Imports TaxThe FG had reportedly implemented the VAT about three weeks ago and some dealers were said to have been mandated to pay the tax for commodities imported several months ago.

The PUNCH reported that some operators said Nigeria imports about 70 per cent of the commodity, while the rest was mainly supplied by the Nigeria Liquefied Natural Gas company.Price Hike In Cooking Gas Inevitable As FG Implements 7.5% Imports TaxOperators also reported that the development had made small businesses and homes in rural and semi-urban areas to revert to firewood and charcoal, as the purchase of cooking gas had plunged in recent months.
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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has also lamented increment in the price, saying it is worrisome.Price Hike In Cooking Gas Inevitable As FG Implements 7.5% Imports TaxSpeaking at the association’s 34th Annual General Meeting (AGM) and Symposium in Lagos, NALPGAM’s President, Mr Nosa Ogieva-Okunbor said if the increment is not addressed, it will “only result in a reversal to the use of the readily affordable charcoal”.
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“In spite of efforts at increasing the availability of cooking gas in the country, the price of the product has become worrisome in the industry. If the trend is not addressed and a lasting solution proffered, all the gains made to increase consumption to the current modest level would be reversed”, Nosa said.
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