Multiple Taxation and Profitability of Small-Scale Business Enterprises in Hoima Municipality Mid-Western Uganda
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Date
2019-07
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The purpose of the study was to examine inutile taxation and profitability of small scale business in Ho/ma Municipality, Mid-Western Uganda. The study was based on three specific objectives; to find the effect taxation policy on the profitability of small scale
businesses in Hoima ivlunicipaiii)4 Mid- Western Uganda, to find out the effect of tax
administration on small business businesses Hoima Municipality, Mid- Western Uganda and to
examine the relationship between multiple taxation and profitability of small scale business
businesses in Hoima Municz~ality, Mid- Western Uganda. It was based on a descrz~tive survey
design basing on the use ofqualitative and quantitative approaches that was adopted to examine
the ef/~ct of multiple taxation and profitability of small scale business enterprises in Ho/ma
Municipality Mid- Western Uganda. Simple random sampling and purposive sampling techniques
were used in the study. Questionnaires were used to collect primary and secondary sources of
data from 50 out of 60 respondents, using simple random sampling. Data analysis was done
usingfrequencies tables. Finally the report looked at the study results and gave the discussion of
each finding. Therejare, 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 efj~ci of multiple taxation policy on the projltability of small scale
businesses in Hoima Munici~aliiy, Mid-Western Uganda. The study findings revealed that SSBs
hene/lted people in Ho/ma Municipality; Mid-Western Uganda had a positive effrci on the small
business enteiprises with 68% of respondents who strongly agreed and 20% agreed. According
objective two, to Jlnd out the e/frct of tax administration on small business businesses Hoima
Munici~alitj~ Mid- Western Uganda indicated that; the negative effect of tax administrations on
projItability of small business enterprises indicated that business premises are locked in case of
fiu7ure 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 mantle
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 a/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 of SSBs should pay early in the financial year in order to give enough
lime to the businesses to pay their dues rather than making an assessment and demand for
payment spontaneously the should improve awareness amongst the taxpayers of the need
to pay taxes and how their tax liability is determined and the time process oft/ic 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, Profitability, Small-Scale Business Enterprises