...Redifining Journalism for Development

Tinubu suspends import duties, VAT on medical supplies

The executive order eliminates tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials, which are vital for manufacturing health products such as drugs, syringes, needles, and rapid diagnostic kits.

1,097

Tinubu suspends import duties, VAT on medical supplies

President Bola Tinubu has issued an executive order to halt import duties and value-added tax (VAT) on essential medical supplies imported into Nigeria.

This decision aims to alleviate the high costs associated with producing pharmaceuticals, diagnostics, and medical devices locally.

Muhammad Ali Pate, the Minister of Health and Social Welfare, disclosed the development, emphasizing that the Minister of Justice and Attorney General of the Federation will take steps to formalize the order.

The initiative is a crucial component of the Initiative for Unlocking the Healthcare Value Chain, approved by the President in October 2023.

The executive order eliminates tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials, which are vital for manufacturing health products such as drugs, syringes, needles, and rapid diagnostic kits.

READ ALSO: Tinubu suspends all National Social Investment Programme

It also introduces mechanisms like framework contracts and volume guarantees to stimulate local manufacturing and reduce production costs.

The collaboration mandated between the Ministries of Health, Finance, and Industry, Trade and Investment aims to streamline regulatory processes and facilitate swift implementation.

Agencies including the Nigeria Customs Service, NAFDAC, SON, and FIRS are tasked with ensuring effective implementation through waivers and exemptions over a two-year period.

Industry stakeholders have welcomed the move, noting that it will promote medical industrialization, enhance economic value creation, and potentially reduce healthcare costs for Nigerians.

However, challenges remain, including previous customs levies and operational fees that continue to burden healthcare providers and pharmaceutical manufacturers.

The decision marks a significant step towards strengthening Nigeria’s healthcare sector and supporting local production capabilities in the face of global economic challenges.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.