What’s Included in the Tax Break?
The tax exemptions will last for two years and cover essential items like:
- Active Pharmaceutical Ingredients (APIs), which are key components in medicines
- Excipients, substances used alongside APIs
- Materials for making vital healthcare products, such as Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, and packaging materials.
Why Is This Important?
The goal of this policy is to boost the production of healthcare products in Nigeria. By removing import duties and Value Added Tax (VAT) on these materials, the government hopes to lower the cost of medical supplies and encourage local investment in the healthcare sector.
Who Can Benefit?
To take advantage of these tax breaks, only manufacturers of pharmaceutical products that are officially recognized by the Federal Ministry of Health and Social Welfare will qualify. These manufacturers must also have a valid Tax Identification Number (TIN) to ensure that benefits go to legitimate businesses dedicated to improving Nigeria’s healthcare system.
Keeping Track and Working Together
Adewale Adeniyi, the Comptroller General of Customs, emphasized the need for transparency. The NCS will keep track of all imports under this new policy and will provide quarterly reports detailing who imported what, how much, and the value of these materials.
“The Nigeria Customs Service is committed to supporting government policies to help trade, secure our borders, and promote national development,” Adeniyi stated. He also highlighted that the successful implementation of this policy will require teamwork from everyone involved, including importers, manufacturers, and relevant government agencies.
With everyone’s efforts, the aim is to create a stronger healthcare sector that serves all Nigerians effectively.
