DAILY TRUST
Experts say prices of drugs are likely to drop following the implementation of the federal government’s executive order on zero VAT and excise duties on pharmaceutical products and medical devices.
The Nigeria Customs Service yesterday said it had commenced the implementation of Value Added Tax (VAT) and import duty exemption on raw materials essential for the production of pharmaceutical products.
The National Public Relations Officer of the Nigerian Customs Service (NCS), Assistant Comptroller of Customs, Abdullahi Maiwada, in a statement on Wednesday, said the decision was in line with the presidential order to boost local production of healthcare products.
President Bola Tinubu had, in June last year, signed the Executive Order to increase local production of pharmaceutical, diagnostics and medical devices.
The NCS’ spokesman said: “Critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax (VAT) for a period of two years.”
The statement added that the exemption covers Active Pharmaceutical Ingredients (APIs), excipients and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents and packaging materials.