The Nigeria Customs Service (NCS) has commenced the implementation of a two-year exemption fiscal policy on import duty and Value Added Tax (VAT) for major pharmaceutical raw materials.
The NCS’ National Public Relations Officer, Abdullahi Maiwada, in a statement issued on Wednesday explained that the implementation of the policy was sequel to President Bola Tinubu’s approval of guidelines to support local pharmaceutical manufacturing and reduce healthcare costs.
He stated that the revenue agency’s measure aligned with the presidential directives to enhance local healthcare manufacturing, reduce production costs, and attract investments, adding that the guidelines were approved by Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to him, the tax exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials used in producing medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
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The Service’s spokesperson further disclosed that the exemption would 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.
Abdullahi clarified: “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 Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development”, he added.
The NCS noted that the successful implementation of the policy required collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.
