Taxation and performance of small scale business enterprises: a case study of Busia Municipality
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Date
2014-06
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study was carried out to find out the impact of taxes on pe1formance of Small Scale
Business ente1prises in Uganda (SSBs), taking a case study of Busia Municipality. The study
aimed at assessing the perfonnance of business ente1prises in Busia Municipality, finding out if
tax payers are aware of all their tax obligations, policies and problems affecting them as well as
their businesses.
The study applied both qualitative and quantitative research designs where interviews and
questionnaires were used. Data was collected from both primary and secondary sources. Data
was processed and analysed using formal tables, pie chruis, narrative text, and correlation to find
out the relationship between the impact of taxes and performance of small scale businesses. A
total of 50 respondents were considered out of the entire population in the Town Council.
The findings indicated that the pe1f01mance of SSBs is affected by stock levels, capital
employed, daily expenses, daily sales ru1d the average runount of taxes paid annually.
Most business owners are aware of taxes paid, w1certain of the mode of assessment and little
assistance is given as regru·ds tax awareness.
The findings revealed the problems faced by the tax payers as regards mode of assessment,
collection and tax collectors, inefficiency by tax collectors, loss of equipment, loss of sales and
loss of stock as a result of taxes.
Recommendations on impact of taxes included; improvement on the method of collecting taxes,
educating the business community about its different tax rates, introducing a scheme that allows
tax payers to pay the tax obligation in installment, and finding a way of assessing the tax the
SSBs should pay early in the financial year in order to give enough time to the business to pay up
their duties rather than make an assessment and demand for payment spontaneously.
Description
Research report submitted to College of Applied Economics and Management Science in partial fulfillment of the Award of a Bachelor's Degree in Business Administration of Kampala International University
Keywords
Taxation, Performance, Business, Enterprises