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Tinubu signs Executive Order removing tariffs, VAT on health sector equipment

June 29, 2024
in Business
Tinubu signs Executive Order removing tariffs, VAT on health sector equipment
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President Bola Tinubu, has signed an Executive Order eliminating tariffs and VAT on healthcare production inputs, as well as promotes local manufacturing with market incentives.

The new order also mandates inter-ministerial collaboration, aiming to reduce costs, enhance competitiveness, and create jobs in Nigeria.

The order aims to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.).

Read also: Manufacturers’ exports ride weaker naira to 9-yr high

Mohammed Pate, Minister of Health and Coordinating Minister for Social Welfare, had at the last Federal Executive Council FEC, briefing hinted of the new Executive Order

The Order introduced zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.

Specified items contained in the new Executive Order include Active Pharmaceutical Ingredients (API), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets and Rapid Diagnostic Kits, among others.

The Order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.

The Order mandates collaboration between the Ministers of Health, Finance, and Industry, Trade and Investment to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks. Agencies including the Nigeria Customs Service, and FIRS will ensure swift implementation, with special waivers and exemptions effective for two years.

The implication of this order is pivot towards market-based incentives to encourage medical industrialization, reducing costs of medical products through import substitution over time, creating and retaining economic value and enabling job creation in the healthcare value chain.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Businessday.ng – https://businessday.ng/news/article/tinubu-signs-executive-order-removing-tariffs-vat-on-health-sector-equipment/

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