The Minister of Finance Kemi Adeosun has indicated the approval of President Buhari of the 2016 Fiscal Policy Measures FPM, made up of Supplementary Protection Measures SPM to take effect from 17th October 2016.
The SPM are made up of Import Adjustment Tax IAT on 173 Tariff lines of the extant ECOWAS CET that superseded the 2015 Fiscal Policy Measures.
Drugs Charged New 20% Import Adjustment Taxes
- Antibiotics
- Alkaloids
- Medicants containing Vitamins
- Anti Malaria
Medical Items with Reduced Import Duty
5. Undenatured ethyl alcohol for medical, pharmaceutical or scientific purposes From 10% to 5%
Medicical Items Prohibited
6. Paracetamol tablets and Syrups
7. Cotrimozazole tablets ans syrups
8. Metronidazole tablets and syrups
9. Chloroquine tables and syrups
10. Haematinic Formulations Folic Acids, Ferrous Sulphate, Vitamin B, Multivitiamins, Asprin, Intravenous Fluids (Dextrose, Saline), ointments Penecilin, Levamisole tablets, Piperazine tablets.
The question is what is the local demand for Malaria and Antibiotics drugs and the capacity of the local players to meet this demand. The Ministries of Health and Finance should provide this. If Malaria durug cannot be produced 100% by local manufacturers, then why a import tariff?
I hope we get answers.
This is a good policy to increase local production and attract foreign investment into the pharmaceutical industry in Nigeria. Imports from India and Pakistan have killed this sector. The government needs to protect them through such policies, of course, the benefits are enormous. Malaria drugs and antibiotics are in high demand in this part of the world with the high incidence of mosquito bites and infectious diseases. We need more of such policies to protect the local industry from cheap imports.