Executive Order on Zero VAT for pharmaceuticals will boost local industry, cut healthcare costs – FG

Federal Government says it has
has finalized the Executive Order Harmonized Implementation Framework and it is now cleared for gazeting.

The Federal Ministry of Health and Social Welfare disclosed this in a statement signed by its Head of Information and Public Relations, Alaba Balogun, on Wednesday.

According to the Ministry, this development enables the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement zero VAT and excise duties on pharmaceutical products and medical devices.

They added that the initiative allows local pharmaceutical and medical device manufacturers to benefit from the relief measures outlined in the Executive Order issued by President Bola Ahmed Tinubu.

The Ministry further stated that by lifting VAT and excise duties, the government aims to significantly reduce the cost of essential pharmaceutical products and medical consumables, which are vital for millions of Nigerians. This, they stated, aligns with the Ministry’s commitment to alleviating both the physical and financial hardships faced by Nigerians who rely on these essential health supplies.

The statement noted that the gazetting of the framework marks the fulfillment of the third pillar of the Ministry’s 4-point agenda, which focuses on unlocking the healthcare value chain.

By fostering a supportive environment for local manufacturers, the Ministry said it aims to promote a healthier and more self-reliant nation. This initiative is expected to make quality healthcare more accessible and affordable to the general population.

With the framework now cleared for gazeting, copies will be distributed to relevant government agencies, including FIRS and the Nigeria Customs Service, for immediate action.