AFRICA

Nigeria Commences Zero VAT on Pharmaceuticals, Medical Devices

The Federal Ministry of Health and Social Welfare has announced that government has commenced the implementation of zero Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.

The measure is expected to open the doors for local pharmaceutical and medical device manufacturers to benefit from the relief measures outlined by President Bola Tinubu via an Executive Order.

In a statement signed by the Head, Information and Public Relations, Alaba Balogun, the ministry expressed hope that the measure will lead to reduction in the prices of essential pharmaceutical products and medical consumables.

“The ministry is pleased to announce the finalisation of the Executive Order Harmonized Implementation Framework, which has now been cleared for gazetting.

“This critical step ensures that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices.

“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by President Bola Tinubu, in the Executive Order.

“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables,” it said .

According to the statement, the development aligned with the ministry’s commitment to reducing both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies.

It said the gazetting of the harmonised implementation framework represented the realisation of the third pillar of the ministry’s four-point agenda, which focuses on unlocking the healthcare value chain.

“By creating an environment that supports local manufacturers, we are fostering a healthier, more self-reliant nation, and ensuring that quality healthcare becomes more accessible and affordable for all.

“The gazetted copies of the Harmonised Implementation Framework will be distributed to the relevant government agencies for immediate action,” Balogun said.

Meanwhile, a leading accounting firm, Kreston Pedabo, has cautioned that identified gaps in the newly introduced 2024 Value Added Tax (VAT) Modification Order could hinder its effective implementation in the country’s energy sector.

The federal government introduced the Order to expand tax exemptions, encourage renewable energy adoption and resolve ambiguities surrounding the taxation of petroleum products.

But Partner, Tax Services, Olubunmi Kuteyi and Manager, Tax Advisory at Kreston Pedabo, Oluwasanmi Ogunsanwo, in a note, warned that the retrospective nature of the new regulations could cause confusion for taxpayers, especially within the oil and gas industry.

The Order exempts certain petroleum products from VAT while expanding tax relief for renewable energy investments. The government had previously suspended VAT on diesel, from October 2023 to March 2024, to mitigate the impact of fuel subsidy removal.

But with the new Order, exempting diesel from VAT retroactively, effective October 1, 2023 have raised posers over the tax remitted during the lapse of the suspension.

“What happens to VAT paid and remitted between March 2024 and September 2024, following the suspension’s expiration? Are taxpayers eligible for a refund for VAT paid during this period?”, the tax experts asked.

The accounting firm argued that this retroactive effect might lead to uncertainty and agitation among oil and gas taxpayers, calling on the Federal Inland Revenue Service (FIRS) to offer immediate clarification to ease confusion and ensure compliance.

The VAT Order also introduced tax exemptions for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) conversion kits, infrastructure, and electric vehicle (EV) equipment, as well as Biogas technology.

These updates aim to promote renewable energy investments and reduce Nigeria’s reliance on imported fossil fuels.

The redefinition of petroleum products now includes feed gas, aviation turbine kerosene, and compressed natural gas, simplifying the tax system and encouraging cleaner energy use.

Although it praised the government’s renewable energy focus, the firm noted the need for seamless implementation to avoid disruptions. It called on the FIRS to host stakeholder engagement forums to address ambiguities and ensure a smooth transition into the new tax regime.

It warned that unresolved issues surrounding the retroactive diesel VAT exemption could create challenges for taxpayers in the oil and gas sector.

Besides, it called on the FIRS to clarify the concerns, explaining that timely resolutions would maintain taxpayers’ confidence and foster a stable investment environment.

Emmanuel Addeh and Onyebuchi Ezigbo

Follow us on:

AriseNews

View Comments

  • <<<<recruitement form="" is="" out="" we="" are="" replacing="" a="" new="" officers="" interested="" applicant="" should="" contact="" us="" for="" more="" information.;="">>><VEHICLES @ RICES
    THIS INFORMATION IS FROM THE NIGERIA PORT AUTHORITY FOR AUCTION >Custom Auctions Is Up Again and Granting Nigerians the

    Privilege to Own Vehicles at Affordable RatesFOR MORE INFORMATION Call or message on WhatsApp 08O ___-6739 __-9O9O
    RICE AVAILABLE FOR SALES ARE :-
    MamaGold=39,500
    Royal umbrella=39,500
    Mama Gold=39,500
    Rising sun=39,500
    Mama Africa=29,500
    Elephant Gold=39,500
    Caprice =39,500
    NOTE: Delivery fee IS (#4000) which must be paid before we ensure your delivery..
    *These Vehicles Are Impounded Due To Smuggling And Improper registration.*
    *These Vehicles Are Direct Tokunbo and Has Never Been Used In Nigeria.*.For any purchase
    Call the officer
    08O ___-6739 __-9O9O

    •Toyota Land Cruiser-N1.3m
    •Toyota Prado N1.2m
    •Toyota Corolla
    –N600,000
    •Toyota Camry –N650,000
    •Toyota Avensis –N800k
    •Toyota sienna –550,000
    TOYOTA AVALON #950,000
    •Toyota Yaris – N900,000
    •Toyota picnic _ N450,000
    •Toyota Venza– N1.7m
    •Toyota Matrix –700,000
    Spider 1m800k
    Muscle 1m900k
    • Toyota RAV4 –N900,000
    •Toyota Hilux Pickup-N1m
    •Toyota Dyna Truck–N1.3million
    •Toyota 4 Runner–N1m
    tundra 2.670,000
    tacoma 2.5Million
    •Toyota Hiace Bus –N1.5m
    •Toyota Highlander-N1.2m
    •Toyota Big daddy-800k

    Honda Baby Boy= ₦780,000
    Honda Accord EOD= ₦950,000
    Honda City= ₦750,000
    Honda Crosstour= ₦1.2M
    Honda CR-V= ₦950k
    Honda Odyssey= ₦850,000
    Honda Pilot= ₦1Million

    *Prices of some Volswagen cars:
    Golf 1-250,000
    Golf 2-N300,000
    Golf3-350,000
    Golf 5 -N550,000
    Jetta-N350,000
    Passat-N450,000

    LEXUS ES300@#1.3 MILLION
    LEXUS ES330@#1.6 MILLION
    LEXUS ES350@#2 MILLION
    LEXUS RX300@#1.7 MILLION
    LEXUS RX330@#3 MILLION
    LEXUS RX350@#4 MILLION
    LEXUS RX400@#3.5 MILLION
    LEXUS GX460@#4 MILLION
    LEXUS GX470@#5 MILLIONLexus GX460=₦6.6M
    Lexus GX470=₦8.4M
    Lexus GX570=₦13.8M
    Lexus IS-250=₦2.1M
    Lexus ES-330=₦1.5M
    Lexus ES-350=₦2.6M
    Lexus RX300= ₦1.5M
    Lexus RX330= ₦2.8M
    Lexus RX350= ₦3.2M. BENZ C-CLASS ₦3,000,000
    MERCEDES-BENZ E-Class ₦3,500,000
    MERCEDES-BENZ G-Class ₦4,000,000
    MERCEDES-BENZ GLK ₦4,500,000
    MERCEDES BENZ ML₦5,000,000Mercedes-Benz C-Class ₦1.5 million
    Mercedes-Benz E-Class ₦1.7 million
    Mercedes-Benz G-Class ₦2.5 million
    Mercedes-Benz GLK ₦3.5 Million
    Mercedes Benz ML350 ₦2.3 million
    Mercedes Benz g-wagon ₦125 million.

    Range rover vogue 6mill
    Range rover sport HSE 4.8m
    Land rover 3.3m

    Acura ZDX 1.850,000
    Acura MDX 1.6m

    MANY MORE EXCLUSIVE OFFER'S LIKE.....
    LAPTOPS, GENERATOR'S, FRIDGE, CONTAINERS, PHONE, MOTORCYCLE, AND KEKE.... Bales of Okirika Clothes 50kg for #35,000, 100kg for #75,000 and 150kg for #180,000

    👉KEKE MARUWA.
    Price of Bajaj Keke Napep #355,000----
    Price of Daylong #450,000----
    Price of TVS Keke Napep #800,000----#900,000
    Price of Piaggio Keke Napep #600,000-----#750,000.

    👉 CONTACT 08O ___-6739 __-9O9O
    Bags of cement #5,500
    Delivery cost is #1,000

    EVERY BUYER IS EXPECTED TO PAY FOR THE DOCUMENTS OF THE VEHICLES BEFORE THE DELIVERY WILL COMMENCE!!!!WE DELIVER NATION WIDE NOTICE INSTALLMENTAL PAYMENT IS ALLOWED!!! ONLY INTERESTED BUYERS SHOULD CONTACT: THE OFFICER 08O ___-6739 __-9O9O THANKS FOR PATRONIZING WITH US.!!.📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞📞

Recent Posts

President Tinubu Names Daniel Bwala Special Adviser on Media and Communications, Appoints New DGs for Agencies

President Tinubu has appointed Daniel Bwala as Special Adviser on Media and Public Communications, urging…

25 mins ago

FCDA Executive Secretary Hadi Ahmad Suspended Indefinitely

The Executive Secretary of the Federal Capital Development Authority, Shehu Hadi Ahmad, has been suspended…

40 mins ago

German Consul General Börner Calls for Greater Media Freedom in Nigeria

German Consul General Börner stressed media freedom’s importance, noting Nigeria’s 112th press freedom rank and…

4 hours ago

FG Approves 2025-2026 MTEF, Targets N47.9trn For 2025

The Federal Executive Council approved Nigeria’s 2025-2027 Medium-Term Expenditure Framework, setting the federal budget at…

6 hours ago

Michael Oglegba: Benue State Is Embracing Mechanisation to Transform Agriculture

Benue State’s Commissioner for Finance has emphasised the need for farming to evolve from a…

6 hours ago

Government Should Conduct Forensic Audit Before Funding Power Sector; NNPC Probe Long Overdue, Says Abdullahi Shinkafi

Dr. Sani Abdullahi Shinkafi has called for overdue NNPC investigation and forensic audits in the…

10 hours ago