FG implements zero VAT and excise duties on pharmaceutical products to reduce prices

NAIRAMETRICS
The Federal government has announced the commencement of zero Value Added Tax (VAT) on pharmaceutical products and medical devices in a bid to reduce drug prices in the country.

In a statement signed by the Head of Information in the Federal Ministry of Health, Alaba. R. Balogun, noted that the Executive Order on harmonised implementation framework has been cleared to be gazetted.

Furthermore, the Ministry noted that following the completion of the process, the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) can now begin implementing zero VAT and excise duties on pharmaceutical products and medical devices.

It also stated that local manufacturers of pharmaceutical products will now begin to benefit from the relief measures.

It stated, “The Ministry of Health and Social Welfare is pleased to announce the finalization of the Executive Order Harmonized Implementation Framework, which has now been cleared for gazetting. This critical step ensures that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices.”

“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.”