BREAKING: Customs commences implementation of zero tax on imported pharmaceutical inputs for two years

The Nigeria Customs Service (NCS) has commenced the implementation of zero tax on imported pharmaceutical inputs for two years.

In a statement on Wednesday, customs said the implementation commenced after President Bola Tinubu approved comprehensive guidelines for the exemption of import duty and value-added tax (VAT) on critical raw materials used in the manufacturing of pharmaceutical products.

The implementation comes almost a year after TheCable sent an appeal on May 23, 2024, to Tinubu, state governors and lawmakers to take urgent policy and legislative actions on the escalating cost of medications, also known as “drugflation”.

TheCable urged the president to issue an unambiguous executive order to cut tariffs on imported medicines and active pharmaceutical ingredients (APIs) for a defined period.

A month after, Tinubu signed an executive orderto introduce zero tax on imported pharmaceutical inputs.

Commenting on the policy on Wednesday, customs said, in line with the presidential directives to enhance local healthcare manufacturing, reduce production costs, and attract investments, the guidelines were approved by Tinubu through Wale Edun, minister of finance and coordinating minister of the economy.

NCS said the exemption will cover APIs, excipients, and other raw materials used in the production of essential medicines.

Others include long-lasting insecticidal nets (LLINs), rapid diagnostic kits, reagents, and packaging materials.

“In commitment to transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy, including data on importers, quantities, and values of the imported items, ensuring the policy’s implementation aligns with its intended objectives,” the statement reads.

“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.”

The service said successful implementation of the policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.

NCS added that through collective efforts, stakeholders can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians. (The Cable)