Multiple taxation and profitability of small scale business enterprises in hoima municipality mid-western Uganda:
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Date
2019-07
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University. College of Economics & Management
Abstract
The purpose of the study was to examine multiple taxation and profitability of small scale
business in Hoima Municipality, Mid-Western Uganda. The study was based on three specific
objectives; to find the effect of multiple taxation policy on the profitability of small scale
businesses in Hoima Municipality, Mid-Western Uganda, to find out the effect of tax
~ministration on small business businesses Hoima Municipality, Mid-Western Uganda and to
~xamine the relationship between multiple taxation and profitability of small scale business
5usinesses in Hoima Municipality, Mid-Western Uganda. It was based on a descriptive survey
lesign basing on the use of qualitative and quantitative approaches that was adopted to examine
he effect of multiple taxation and profitability of small scale business enterprises in hoima
~v[unicipality Mid-Western Uganda. Simple random sampling andpurposive sampling techniques
were used in the study. Questionnaires were used to collect primary and secondary sources of
lata from 50 out of 60 respondents, using simple random sampling. Data analysis was done counterinsurgencies tables. Finally the report looked at the study results and gave the discussion of
ach Jlnding. Therefore, here, data analysis, procedures and response rate are focused on. Then
the findings and graphs inclusions and recommendations are presented. The findings on the first
objective provided to find the effect of multiple taxation policy on the profitability of small scale
businesses in Hoima Municipality, Mid-Western Uganda. The study findings revealed that SSBs
benefited people in Hoima Municipality; Mid-Western Uganda had a positive effect on the small
business enterprises with 68% of respondents who strongly agreed and 20% agreed. According
objective two, to find out the effect of tax administration on small business businesses Hoima
Municipality, Mid- Western Uganda indicated that, the negative effect of tax administrations on
profitability of small business enterprises indicated that business premises are locked in case of
failure to pay taxes and have greatly increased overtime by response of 68% and there are
suggestions that the government has done to improve income tax administration and has greatly
increased overtime by 59%,According to objective three, to examine the relationship between
multiple taxation and profitability of small scale business businesses in Hoima Municipality,
Mid-Western Uganda. On average that, multiple taxation policies in the business have led to
increase in gross profit margin as indicated over by 73% strongly agreed and also multiple
taxation helps in the growth of the business. Indicated that tax systems play an important role in
encouraging growth, investment and innovation and facilitating international trade and mobility.
Conclusion, constructing appropriate indicators and setting an appropriate tax rate is
challenging. It requires extensive analysis of profit margins and will usually be disputed by some
in the business community. Small businesses are not necessarily small earners; rates need to be
low enough to encourage firms at the upper end of the threshold to join the general system and
low enough to encourage informal entrepreneurs to comply. Recommendation, as a way of
reducing the burden of income taxes on SSBs the tax authority should find a way of assessing the
tax, in that the profitability ofSSBs shouldpay early in the financial year in order to give enough
time to the businesses to pay their dues rather than making an assessment and demand for
payment spontaneously. The URA should improve awareness amongst the taxpayers of the need
to pay taxes and how their tax liability is determined and the time process of the tax assessment.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of a bachelor’s degree in business administration of Kampala international university.
Keywords
Multiple taxation, small scale business, enterprises