VAT and Import Duty Cuts on Medical Supplies Fail to Make Impact – Shehu Sani

Despite the removal of VAT and import duties on medical supplies, Shehu Sani argues that the measures have not brought any significant changes.

Senator Shehu Sani, a former legislator, has proposed that the elimination of customs duties on pharmaceutical imports has not resulted in lower prices for healthcare products.

Despite President Bola Tinubu signing an executive order to suspend import duties, Sani noted that there has been no decrease in drug prices at pharmaceutical stores.

On Sunday, the former legislator shared on X that there has been no decrease in drug prices at pharmaceutical stores despite lifting importation tariffs on drugs.

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In June, Tinubu signed an executive order that suspended import duties and value-added tax on crucial medical supplies imported into the country.

The goal was to alleviate the expensive local production of pharmaceuticals, diagnostics, and medical equipment such as syringes and needles.

The Minister of Health and Social Welfare, Muhammad Ali Pate, declared that the order is essential for accomplishing success in the Initiative for Unlocking the Health Care Value Chain which was sanctioned by the President in October 2023.

The intent of the order is to improve local manufacturers’ competitiveness by reducing production costs through zero tariffs on particular machinery, equipment, and raw materials while also eliminating excise duties and VAT.