FG to exempt baby products from tax
The Federal Government has planned to exempt tax on baby products, locally manufactured sanitary towels, pads, and tampons.
A bill to that effect has been initiated by the government. It is titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions and Instruments, and Related Matters.”
The bill, dated October 4, 2024, and obtained from the National Assembly by our correspondent offers insights into the government’s tax strategy and fund distribution over the coming years.
The bill stipulated that the Federal Government would not impose a tax on baby products; locally manufactured sanitary towels, pads or tampons; among others.
It partly read, “The following supplies are exempt from the Value Added Tax imposed under chapter six of this Act -oil and gas exports; crude petroleum oil and feed gas; goods purchased for use in humanitarian donor funded projects provided that the humanitarian donor shall first pay the VAT and request a refund from the Service.
“Baby products; locally manufactured sanitary towels, pads or tampons; military hardware, arms, ammunitions and locally manufactured uniforms supplied to armed forces, para-military and other security agencies of a Nigerian government.”
Commenting on the initiative, a global health equity advocate, Dr Ifeanyi Nsofor noted that the initiatives were promising as they offered more affordable options.
He, however, said, “With the rising cost of living, many Nigerians still struggle to afford these products. Child malnutrition continues to rise, and period poverty remains a persistent issue.”
