Taxation and performance of small scale businesses in custom market, Juba, Southern Sudan

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Date
2011-06
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study examined the effects of Taxation on the performance of small scale businesses in the custom market in Juba, Southern Sudan. It was correlational descriptive and analytical based on primary and secondary data. Face to face Interviews and questionnaires and observation were utilized in gathering data fro a sample of 70 vendors selected using purpose and convenient sampling techniques. Findings of the study were, most tax collectors were harsh when collecting taxes thus fluctuation sales, tax assessment was unfair and took much time, majority of taxpayers were compliant enough during tax payment, most SSBs were not given tax exemptions and generally SSBs had never accessed tax exemptions. Most SSBs profits had not increased due to unfair taxation, had low capital and saved little. Most SSBs never complied with tax payment due to bribery and conuption behavior of the tax collectors, Tax payment policies were generally unfair and never favoured capital accumulation and business expansion. Most tax payer rights were not observed, most small scale businesses were not given tax exemptions, generally there wasn't simplification and there was less sensitization and educating of proptietors in SSBs about taxation .. The study concludes that, unfair assessment of tax, poor collection system, conuption and bribery behavior of tax collectors led to high taxation of SSBs in the custom market of Juba thus poor businesses activity. The researcher therefore recommends that; harsh, conupt and other poor perf01ming tax collectors should be penalized, tax assessment should be fair and take less time to all businesses through proper studying of business perfonnance before tax assessment. Tax payers should be compliant enough during tax assessment, collection and payment so that they are not cheated or cheat the market administrators. SSBs should be given tax exemptions so that their capital accumulates. Tax payer rights should be observed when collecting tax because they would be more compliant with tax payment. There should be simplification of the tax structures in the custom market so that people become compliant enough with tax payment and there should be sensitization and educating of proprietors in SSBs about taxation policies so that people know the reason why they pay tax.
Description
A research report submitted to the School of Economics and Applied Statistics in partial fulfillment of the requirements for the Award of Bachelor’s Degree in Economics of Kampala International University
Keywords
Taxation, Perfomance, Small scale, Businesses
Citation