PSN calls for review of 20 percent tariff on imported medicines
The Pharmaceutical Society of Nigeria (PSN) has said the new tax policy imposing 20 per cent tariff on imported medicines could skyrocket the prices of drugs. The PSN noted that the policy dubbed 20 % Import Adjustment Tax recently released by the Federal Ministry of Finance through a circular now imposes 20 per cent tariff […]
The Pharmaceutical Society of Nigeria (PSN) has said the new tax policy imposing 20 per cent tariff on imported medicines could skyrocket the prices of drugs.
The PSN noted that the policy dubbed 20 % Import Adjustment Tax recently released by the Federal Ministry of Finance through a circular now imposes 20 per cent tariff on imported medicines as against zero tax which existed before.
PSN in a presentation made to the Acting President, Prof. Yemi Osinbajo to call his attention to the implication of the policy stressed that it negated the ECOWAS position on zero tax on imported drugs which Nigeria supported.
According to PSN, the ECOWAS position was that charging zero or insignificant duties on medicines was the only realistic means to address the dearth of medicine manufacturers in the West African region.
In the presentation made to Osinbajo and signed by PSN President, Pharm. Ahmed Yakasai and National Secretary, Pharm. Gbolagade Iyiola, the society noted that beside the World Trade Organization (WTO) which Nigeria subscribes to in 1988 recommended not more than 5% duty on medicine because of its life saving nature.
In the presentation tagged, “Averting avoidable fatalities in the health sector”, the PSN observed that the new tax regime had pushed up the prices of anti-malaria drugs.
It said, “We say that 65 % of clinical visits are malaria based. Incidentally the National Malaria Policy advocates the use of the Arthemisine Combined Therapy (ACT) medicines as drugs of choice in the treatment of malaria.
“The present increase has taken the average shelf price of an ACT medicine to N1, 600 with a propensity to hit N20,000 before the end of the first quarter. It is the same scenario with anti-infectives particularly antibiotics which are common drugs of choice in our health system. It is obvious that what this policy will do is to increase mortality rate in the ranks of consumers of health”.
The society however urged the Federal Government to immediately review the 20 % Import Adjustment Tax on imported medicines along the reflected lines and categories.
PSN also charged the Acting President to urgently appoint a seasoned registered pharmacist as the Director-General NAFDAC in tandem with law, while also reconstituting the Governor Councils of NAFDAC, PCN and NIPRD.