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FG Implements Zero VAT for Pharmaceutical Products

Federal Ministry of Health and Social Welfare said it has finalised the Executive Order Harmonized Implementation Framework that abolishes Value Added Tax (VAT) and...
HomeNewsFG Implements Zero VAT for Pharmaceutical Products

FG Implements Zero VAT for Pharmaceutical Products

Federal Ministry of Health and Social Welfare said it has finalised the Executive Order Harmonized Implementation Framework that abolishes Value Added Tax (VAT) and Excise Duties on pharmaceutical products and medical devices.

Dr Tunji Alausa, Minister of State for Health and Social Welfare, disclosed this in an interview with journalistsrecently in Abuja.Alausa said that the development, which has been cleared for gazetting, was expected to enhance the operational capacity of local pharmaceutical manufacturers and reduce the prices of essential healthcare supplies.

“The new framework allows the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement these tax exemptions, paving the way for local producers to fully benefit from the relief measures initiated by President Bola Ahmed Tinubu,” he said.

The minister said that this initiative would alleviate the financial burden on millions of Nigerians reliant on critical health supplies, aligning with its commitment to improving healthcare access and affordability.

“By supporting local manufacturers, we are unlocking the healthcare value chain and making quality healthcare more accessible for all,” he said, adding that the gazetting of the Harmonised Implementation Framework marked a key achievement in the Ministry’s 4-point agenda, which stressed the importance of local production in strengthening the nation’s health sector.

“Copies of the framework will be disseminated to relevant agencies for prompt action, signalling a concerted effort to improve healthcare delivery across Nigeria,” he said.

He noted that the initiative was widely viewed as a positive step toward stabilising the pharmaceutical market and ensuring that essential medications and medical devices were available at lower prices.