The Federal government has announced the commencement of zero Value Added Tax (VAT) on pharmaceutical products and medical devices.
The policy is intended to reduce the prices of drugs in the country.
Head of Information in the Federal Ministry of Health, Alaba Balogun, who made this known in a statement on Wednesday, said the Executive Order on harmonised implementation framework has been cleared to be gazetted.
The statement further 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.
“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,” the statement read.
It was noted that the gazetting of the Harmonizsed Implementation Framework represented the realisation of the third pillar of the Ministry’s 4-point agenda, which focuses on unlocking the healthcare value chain.
