FG’s tax relief to lower medical costs welcomed by stakeholders

The Federal Government’s efforts to reduce the cost of medical expenses through a tax relief initiative have been widely praised by the Tinubu Stakeholders Forum (TSF).

The move, designed to lower the prices of drugs and medical supplies, has been described as a compassionate step towards making healthcare more affordable for Nigerians.

Despite the government’s ongoing drive to generate revenue to fund critical infrastructure, the TSF noted that the administration has taken significant steps to grant tax reliefs on pharmaceutical products, medical devices, and related supplies. These measures are aimed at ensuring citizens have access to cheaper and better healthcare services.

In a statement signed by its Chairman, Ahmad Sajoh, and Secretary, Afolabi Josiah, the TSF confirmed that the relief measures were formalized through an Executive Order, which introduces zero Value-Added Tax (VAT) and exempts excise duties on pharmaceutical products and medical devices.

“This initiative highlights President Bola Tinubu’s dedication to improving Nigeria’s healthcare sector while easing the financial burden on citizens,” the TSF stated.

According to the group, the Executive Order builds on an announcement made by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, on June 28, when he revealed that the President had signed an order aimed at boosting local production of healthcare products. These products include pharmaceuticals, diagnostics, medical devices, biologicals, and medical textiles.

The Federal Ministry of Health and Social Welfare has confirmed that the harmonized implementation framework has now been cleared for gazetting, which is expected to lead to the swift execution of the policy.

“With this milestone, the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) can now move forward with implementing zero VAT and excise duties,” the statement read. “Local manufacturers in the pharmaceutical and medical device sectors will benefit from this relief, making Nigeria’s healthcare industry more competitive.”

The TSF expressed confidence that the implementation of the Executive Order will lead to a significant reduction in the cost of essential medicines and medical supplies, making healthcare more accessible to millions of Nigerians.

“This initiative aligns with the Ministry’s goal of unlocking the full potential of the healthcare value chain and alleviating financial pressures on citizens,” the group added. The TSF also called on all stakeholders within the healthcare industry to support the government’s efforts in realizing the benefits of these policy measures.

The Executive Order, the TSF concluded, stands as a testament to President Tinubu’s vision for a healthier, more self-reliant Nigeria.