FG okays zero VAT, duty on pharmaceuticals for gazette

FG okays zero VAT, duty on pharmaceuticals for gazette

The Federal Government has announced the completion of an Executive Order to implement zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.

This significant development was disclosed in a statement by Alaba Balogun, the spokesman for the Federal Ministry of Health and Social Welfare.

According to Balogun, the harmonized implementation framework for the Executive Order has now been cleared for gazetting, marking an important step towards enhancing the affordability and accessibility of essential medical supplies in Nigeria.

This move is expected to alleviate the financial burden on both manufacturers and consumers, ultimately improving public health outcomes across the country.

“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,” he said.

READ ALSO:

• Human rights writers back Rivers gov on judicial inquiry against ‘political terrorists’
• Again, court restrain Emir Bayero from renovating mini palace
• Sub-Saharan Africa among most dangerous regions for girls – UNICEF

“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.”

According to the statement, 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.

This comes about four months after the Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate, announced 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.

FG okays zero VAT, duty on pharmaceuticals for gazette