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Lower cost of drugs, health care expected, as Nigeria implements zero VAT on pharmaceutical products
The federal government has finalized the executive order to implement zero value-added tax (VAT) and excise duties on imported pharmaceutical products and medical devices, in a significant move to revitalize the Nigerian health sector.
This development, announced by Tunji Alausa, Minister of State for Health and Social Welfare, on Wednesday, is expected to enhance the operational capacity of local pharmaceutical manufacturers and reduce the prices of essential healthcare supplies.
President Bola Tinubu signed an executive order on June 28, introducing zero tariffs, excise duties, and VAT on imported pharmaceutical inputs. The goal is to increase the production of healthcare products and make quality healthcare more accessible to Nigerians.
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“The new framework allows the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement these tax exemptions, paving the way for local producers to fully benefit from the relief measures initiated by President Bola Ahmed Tinubu,” Alausa stated. This initiative aims to alleviate the financial burden on millions of Nigerians reliant on critical health supplies.
Key Benefits of Zero VAT on Pharmaceutical Products:
– Enhanced Operational Capacity: Local pharmaceutical manufacturers will benefit from tax exemptions, increasing their production capacity.
– Reduced Healthcare Costs: Prices of essential healthcare supplies will decrease, making quality healthcare more affordable.
– Improved Healthcare Access: The initiative will foster a healthier, more self-reliant nation.
– Stabilized Pharmaceutical Market: Essential medications and medical devices will be available at lower costs.
Alausa emphasized that the gazetting of the harmonized implementation framework marks a key achievement in the ministry’s four-point agenda, focusing on unlocking the healthcare value chain. Copies of the framework will be disseminated to relevant agencies for prompt action.
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