The Edo State Governor, Mr. Godwin Obaseki, on Tuesday, granted tax credit to Saro Group of Companies, as part of efforts by the government to fast-track development across the state.
The governor, while signing the clearance certificate at the Government House in Benin City, said the tax credit will be used for the development of infrastructure, including the construction of roads and upgrade of facilities such as primary healthcare centers.
He explained that the scheme is targeted at revolutionalising government’s approach to financing infrastructure to engender sustainable development, as the scheme allows private sector players to invest in infrastructure, in return for tax credits.
Obaseki said, “Executive Order number 1 of 2021 is the legal basis and framework on which this scheme was designed. The scheme is borne out of our desire to fast-track development of infrastructure across the state, as the government can’t do it alone.”
He added: “I want to encourage companies, shareholders and individuals who have business interests in Edo State, or companies making money through production, that the government is ready to further partner with them in the area of giving them tax credit, which will be utilised to expand Infrastructure in the state.”
Obaseki urged those already collecting tax credits from Federal Government but operating in the state to apply such tax credits to some of the communities where they do their businesses, adding, “this country is going to grow on the back of the investment being made by the private sector and their tax contributions will finance both state and federal governments in the years ahead”.
The governor continued: “The Federal Government is doing the same as some major companies are benefiting and some of them have operations in Edo, but using it in other states. We encourage them to utilize the tax credit in the area they are making money rather than taking it somewhere else.
“We want to encourage more Investors to invest in Edo State as the government has put all measures on ground to protect investors coming into the state, as we would not allow those that want to discourage investors in the state.
“Today is historic because the state is doing something that has not been done before except by the federal government. We have realized that looking into the future, the sources of financing government activities will come mostly from the private sector.”
Earlier, the Chief Executive Officer of Saro Group of Companies, Mr. Rasheed Sarumi, hailed the governor for the tax credit.