Pharmaceutical manufacturers are hit with losses of up to eight per cent due to the Federal Government’s delay in implementing its zero-Value Added Tax policy designed to ease the cost of pharmaceutical raw material imports.
The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria estimates that they lose up to eight per cent of their revenues as opposed to getting the intended relief, according to the PMG-MAN Chairman, Oluwatosin Jolayemi.
“The elephant in the room is that we are not able to pay duties,” Jolayemi explained. “For the zero VAT and non-payment of duties, we are yet to start seeing any benefits. There is supposed to be an implementation, but we haven’t received a protocol.”
He pointed out that the executive order being gazetted does not mean the Nigerian Customs Service would recognise it, saying “Until the government establishes an implementation protocol, the executive order remains just words on paper.”
The PUNCH learned that the executive order, intended to suspend import duties and VAT on pharmaceutical raw materials and equipment, has yet to be adopted by the NCS due to bureaucratic delays.
