The Effects of Taxation on Profitability of Firms: A Case of Mtn (Uganda)
Loading...
Date
2007-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Uganda's tax system has been characterized by several types of taxes. These have however not
helped to widen the tax base of the country and hence there has been low revenue collection as
opposed to the objective of government policy to increase revenue out-turn. With the above view
in mind, the government decided in 1994, to change her current tax system to a new one,
whereby Sales Tax (ST) and Commercial Transaction Levy (CTL) tax were replaced by VAT,
with hope that URA at the wheel, will be obtained, just like revenue collection have been
increasing every year since 1992.
The objectives of the study were to examine the effect of imposing tax on traders, identifying its
effect on administration, identifying the perceptions of business community, implementation
process and the way forward (solutions) on whether to continue with it or not.
The study was conducted within the heart of MTN where I interviewed 30 members of staff and
15 U.R.A officials which were chosen on a random basis. The data was basically primary and
secondary which was collected from different categories of respondents such as traders, URA
officials and other professionals.
The findings revealed that since the imposition of tax, its impact on traders was not immediately
realized but to date, traders have started to realize its effect though its still a mixed feeling more
particularly regarding the knowledge about its impact on the sales turnover, profits and taxable
capacity.
The result of the study showed that taxation system is bound to be much successful but after
much more ground has been leveled for some of the reasons such as competent and committed
manpower, political will, appropriate tax administration or laws, proper book keeping system,
voluntary compliance and the entire public support.
Description
A Research Proposal Submitted To the Faculty of Business and Management in Partial Fulfillment for the Award of a Bachelor of International Business Administration of Kampala International University
Keywords
Taxation on Profitability of Firms, Mtn (Uganda)