Oyo State Governor, Seyi Makinde, has reassured residents that his administration will not introduce new taxes, highlighting that the state has gone over six years without implementing any additional tax measures. In a recent media interaction with Channels TV, Governor Makinde explained that his government has instead focused on expanding the existing tax base by bringing more individuals and businesses into the tax net.
The governor illustrated the administration’s approach as a “chicken-and-egg” scenario, where the question arises as to whether it is more effective to impose taxes first or create an environment conducive to economic growth. According to Governor Makinde, “When you create a living environment where people and businesses can expand production, you build a productive economy. Only then are you in a position to raise revenue effectively.”
By prioritizing economic growth, the administration aims to establish a sustainable and equitable tax system for the state’s residents. This approach is grounded in the understanding that a thriving economy is essential for generating revenue and ensuring the state’s fiscal stability. Governor Makinde’s assurance is significant, given the potential impact of taxation on the state’s economy and its residents.
In the context of Oyo State’s economic development, the decision not to introduce new taxes is seen as a strategic move to promote business growth and attract investment. By maintaining a stable tax environment, the state aims to encourage entrepreneurship, create jobs, and increase economic activity. As the administration continues to focus on fostering economic growth, it is likely that the state’s revenue will increase, enabling the government to fund public services and infrastructure development.
The governor’s emphasis on creating a conducive environment for economic growth underscores the importance of a balanced approach to taxation and economic development. As Oyo State navigates its economic trajectory, the administration’s commitment to avoiding new taxes and expanding the tax base is expected to yield positive outcomes for the state’s economy and its residents. With a focus on sustainable economic growth, the state is poised to achieve long-term fiscal stability and prosperity.
