Customs exempts import tax and value-added tax on raw materials of medicines

NCS Nigeria Customs Services has waived import tax and VAT, and VAT on key raw materials that are crucial to the production of medicines will be in the next two years.

Abdullahi Maiwada, a spokesman for the agency, announced this in a statement in Abuja on Wednesday, March 26.

Maiwada explained that the exemption is part of the comprehensive guidelines approved by the Minister of Finance and Minister of Economic Coordination Mr Wale Edun to achieve the goals of the Presidential Directive.

According to him, this exemption covers the active pharmaceutical ingredients (APIs), excipients and other important raw materials required for the production of essential drugs, durable insecticide nets (LLINs), rapid diagnostic kits, kits, reagents and packaging materials.

“To ensure that these fiscal incentives are fully utilized, eligibility is limited to pharmaceutical manufacturers recognized by the Federal Department of Health and Social Welfare, as long as they have a valid Tax Identification Number (TIN).

“The measure will ensure that the proceeds directly support legal manufacturers committed to strengthening Nigeria’s healthcare infrastructure.”

A NCS spokesperson also said the service will compile quarterly reports on all imports under this policy.