All On, which is a seeded company of Shell, has advised Nigeria to initiate and implement a graduated and weighty tax system on the production, assemblage and importation of power generating sets that use diesel and petrol.All On, also asked the country to set a timeline of three years to kick out generators in the country and transit from using such fossil fuel generating sets to clean energy sources such as solar.
The report, it explained was to stimulate the growth of the clean off-grid energy sector by designing strategic incentives to promote the sector. It noted that it identified existing regulations in the sector as well as made recommendations on how they could become significantly improved on to guarantee growth of the sector.
“The importation of generators may also be discouraged by the introduction of additional levies in the form of Import Adjustment Tax . Currently, IAT ranging from 15 per cent to 35 per cent is applicable on varying categories of generating sets. However, we propose that the IAT rate be increased to 50 per cent.”
“We recommend that all renewable energy equipment used in the generation of off-grid electricity should be exempted from the payment of import duties,” it stated while listing such equipment to include any capacity of Photovoltaic panels for power generation; control systems for PV panels and renewable energy powered generators working with direct current; hydroelectric generators; static DC to alternating current converters for PV systems; inverter batteries; DC electronic equipment for use...