FG to scrap VAT on Pharmaceuticals

The Federal Government has completed the Executive Order to eliminate Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices, according to Alaba Balogun, the spokesperson for the Federal Ministry of Health and Social Welfare. In a statement on Wednesday, October 9, Balogun confirmed that the government has finalized the harmonized implementation framework for the Executive Order and is ready to publish it.

This development enables the Federal Inland Revenue Service and the Nigeria Customs Service to move forward with implementing zero VAT and excise duties on these medical items. The move is expected to benefit local manufacturers of pharmaceuticals and medical devices by providing them with relief measures, as outlined by President Bola Ahmed Tinubu in the Executive Order.

The implementation is anticipated to lower the prices of essential pharmaceutical products and medical consumables, which aligns with the Ministry's goal of easing both the physical and financial burdens faced by millions of Nigerians relying on these crucial health supplies.

This announcement follows the statement made by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, four months ago, when he revealed that President Tinubu signed the Executive Order to boost local production of healthcare products, including pharmaceuticals, diagnostics, devices, biologicals, and medical textiles.