Federal Government Finalizes Executive Order for Zero VAT on Pharmaceuticals and Medical Devices

 

The Federal Government has concluded the process to implement an Executive Order that removes Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices, according to a statement from the Federal Ministry of Health and Social Welfare. Alaba Balogun, the ministry's spokesman, announced this on Wednesday, October 9.

The statement revealed that the government has completed the harmonized framework for the Executive Order and is now prepared to officially publish it.

"This important step allows the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to start applying zero VAT and excise duties on pharmaceutical products and medical devices," the statement read. "It marks a significant milestone, enabling local manufacturers in the pharmaceutical and medical device sectors to benefit from the tax relief measures introduced by President Bola Ahmed Tinubu in the Executive Order."

The implementation of this order is expected to lead to a reduction in the prices of essential pharmaceuticals and medical supplies, aligning with the Ministry’s goal of easing the financial and physical burdens faced by millions of Nigerians who rely on these vital health products.

This announcement comes four months after the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, revealed that President Tinubu had signed an executive order aimed at boosting local production of healthcare items. These include pharmaceuticals, medical devices such as needles and syringes, diagnostic tools, biological products, and medical textiles.