Federal Government Abolishes VAT on Pharmaceuticals and Medical Devices to Boost Local Production
The Executive Order to impose zero value-added tax and excise charges on pharmaceuticals and medical devices has reportedly been finalised, according to the Federal Government. The Federal Ministry of Health and Social Welfare’s spokesperson,
This was revealed by Alaba Balogun in a statement that was made public on Wednesday, October 9. The statement claims that the Executive Order’s harmonised implementation framework has been completed and that the Federal government is prepared to publicise it.
“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.”
This occurred roughly four months after President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, medical textiles, biologicals, and devices like needles and syringes. The announcement was made by Prof. Muhammad Pate, the Coordinating Minister of Health and Social Welfare.
