FG finalises plan for zero VAT on pharmaceuticals
The Federal Government has finalised the Executive Order to implement zero Value-Added Tax and excise duties on pharmaceutical products and medical devices.
This was disclosed in a press statement on Wednesday, signed by the Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, Alaba Balogun.
On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate, announced on his X handle that President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textiles, and others.
The statement noted that the finalisation of the Executive Order’s harmonised implementation framework has now been cleared for gazetting.
“This critical step ensures that the Federal Inland Revenue Service and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices.
“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by His Excellency, President Bola Ahmed Tinubu, in the Executive Order.
“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables.
“This development aligns with the Ministry’s unwavering commitment to reducing both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies,” it stated.
It added that the gazetting of the harmonised implementation framework represents the realisation of the third pillar of the Ministry’s four-point agenda, which focuses on unlocking the healthcare value chain.
