The Federal Government has completed the process to implement zero value-added tax (VAT) and excise duties on pharmaceutical products and medical devices, following the finalization of an Executive Order.
This was disclosed in a recent press statement released by Mr. Alaba Balogun, Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare.
According to the statement, the harmonized implementation framework for the Executive Order has been cleared for gazetting, paving the way for tax relief in the healthcare sector.
The Executive Order, first announced by the Coordinating Minister of Health and Social Welfare, Professor Muhammad Pate, on June 28, 2024, seeks to boost local production of healthcare products, including pharmaceuticals, diagnostics, medical devices such as syringes and needles, biologicals, and medical textiles.
President Bola Tinubu signed the Executive Order to provide tax relief as part of measures to enhance access to affordable healthcare products in the country.
“This critical step ensures that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) can now proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices,” the statement read.
The Ministry also highlighted that the implementation of this order will significantly lower the cost of essential medical consumables, benefiting both manufacturers and consumers.
“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to fully benefit from the relief measures outlined by His Excellency, President Bola Ahmed Tinubu,” the statement added.
The move is expected to reduce prices of key healthcare products, improving access to affordable medical care across the country.
