The Senate on Tuesday urged the Federal Government to include anti-cancer, malaria, diabetes and other essential pharmaceutical drugs on the streamlined import duty and Value Added Tax (VAT) waiver.
The Federal Government on the recommendation of the World Health Organisation (WHO) and the World Customs Organisation (WCO) had adopted certain fiscal measures including introduction of Import Duty and VAT waivers on essential health and medical supplies to abate the spread of the COVID-19 pandemic in Nigeria.
The supplies which include covid-19 test kits, protective garments, thermometers, disinfectants, sterilization products, medical ventilators, patient monitoring devices, etc, were exempted from import duty and VAT payment for a period of six months effective from 1st of May 2020.
The resolution of the Senate followed a motion on the โUrgent need for the Federal Government to streamline Import Duty and Value Added Tax (VAT) Waiver to essential pharmaceuticals drugsโ sponsored by Senator Ifeanyi Ubah (Anambra South).
Senator Ubah, in his lead debate, noted that import duty and VAT waivers granted by the Federal Government on medical supplies as operated by the Nigeria Customs Service did not extend to essential pharmaceutical drugs such as anti-malaria, anti-diabetes, anti-hypertensive, anti-cancer and several other medications needed by children, the elderly and the most vulnerable group in the country.
According to him, people with underlying ailments such as diabetes, asthma, high blood pressure, cancer, are reported to have recorded the highest mortality rate out of those who died from the Coronavirus.
As a result, he underscored the need for special fiscal measures to ensure that drugs for the treatment of such categories of persons are granted import duty and VAT waivers so that those who need such drugs can access them easily.
Ubah also pointed out the absence of a globally accepted treatment for the virus has made most clinicians in Nigeria to deploy a combination of different drugs including those already in use for the treatment of other ailments thereby putting immense pressure on the existing supply chain.
He said the situation has led to a spike in prices on commonly consumed drugs.
He also noted that the current exchange rate has adversely affected pharmaceutical companies.
The prayer of the motion urging the Federal Government through the Federal Ministry of Finance to streamline the import duty and VAT waivers granted on medical supplies to apply on essential pharmaceutical drugs such as anti-malaria, anti-diabetes, anti-hypertensive, anti-cancer and several others needed by children and elderly and most vulnerable group of people to the virus, was approved by the Senate.
The Chamber also mandated its committees on Finance, Health (secondary and tertiary), Primary Healthcare and Communicable Diseases to liaise with the Ministry of Finance to ensure compliance with its resolution.
