Taxation and Performance of Small Scale Businesses in Soroti Central Market, Soroti District, Uganda.
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Date
2015-05
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study is set to empirically establish the impact of taxation on the performance of small
scale businesses in Soroti Central market in Soroti UGANDA. The purpose of this study was
to find out whether the amount of tax paid could affect the profits and performance of the
small scale businesses. In order to establish the relationship the researcher assumed that
other related factors were to make significant effect on profits and performance of small
businesses.
While tax has been embraced and described by the Government as "Taxes made easy," the
business community believe that it has undesirable effects on their businesses like; High prices,
low sales and low profits. Interviews, questionnaires and observation helped the researcher to
collect the necessary data.
The data was mainly collected using questionnaires, interviews and analysis using
relationships. Books and journals were also used to collect information on how other authors
and researchers view the subject of taxation and how it affects the performance of
businesses.
From the data analyzed, there was a significant relationship between the amount of tax paid
and the performance of the small businesses in Soroti central market, such as high Tax rate
resulting in increase in prices of goods and services, low sales, low profits, hence provision of
poor quality goods and services due to high tax rates.
Moderate rate of Tax for efficiency and effectiveness of the businesses and the assessment of
taxes should be on the ability to pay and therefore extra effort and emphasis was put on tax
payers' education and awareness to fully understand tax and provide the business people
with skills for systematic bookkeeping.
Description
A research report submitted to the College of Applied Economics and Management Sciences in Partial Fulfillment of the Requirements for the Award of a Bachelors Degree in Business Administration of Kampala International University.
Keywords
Taxation, Small Scale Businesses, Performance, Soroti District, Uganda