Multiple Taxation and Profitability of Small-Scale Business Enterprises in Hoima Municipality Mid-Western Uganda

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Kampala International University, College of Economics and Management.
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.
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
Multiple Taxation, Profitability, Small-Scale Business Enterprises