Covid-19: FG exempts medical supplies from VAT, import duties

The Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, issued a Circular dated Thursday, April 30, 2020 conveying the approval by President Muhammadu Buhari of the implementation of new fiscal policy measures aimed at facilitating the importation of essential medical supplies to combat the Coronavirus (COVID-19) pandemic in Nigeria.

Specifically, the circular exempts importers of specified medical supplies from payment of import duties and value added tax (VAT) on such items for a six-month period in the first instance, with effect from May 1, 2020.

Wole Obayomi, Partner & Head, Tax, Regulatory & People Services, KPMG in Nigeria, said the decision is “a step in the right direction”.

He hopes that the importers of these products will pass down the benefits of this decision to the healthcare institutions dealing with Covid-19 cases in Nigeria.

Federal Government’s circular contains the relevant Customs Harmonised System Classification Codes for each exempt item and, directs the Nigeria Customs Service (NCS) to expedite clearance of the medical supplies in line with Standard Operating Procedures for clearing humanitarian and relief materials.

The items include Covid-19 test kits and apparatus, protective garments, thermometers, disinfectants/sterilisation products, other medical devices and medical consumables.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.