Taxation and Performance of Small Businesses in Kansanga Market Kampala Uganda
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Date
2012-03
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study was set to empirically establish the impact of taxation on the performance of small
businesses in Kasanga Market in Kampala Uganda. The purpose of this study was to
find out whether the amount of Tax paid could affect the profits and performance. In order
to establish the relationship the researcher assumed that other related factors were to make
significant effect on profits and performance of small businesses.
While tax has been embraced and described by the Government as "Taxes made easy," the
Business community believe that it has undesirable effects on their Businesses like; High prices,
low sales and low profits. Interviews, questionnaires and observation helped the researcher to
collect the necessary data. The data was mainly collected using questionnaires, interviews and
analysis using relationships. Books and journals were also used to collect information on how
other authors and researchers view the subject of taxation and how it affects the performance
of Businesses.
From the data analyzed, there was a significant relationship between the amount of tax paid
and the performance of the small Businesses in Kasanga Market, such as high Tax rate
resulting in increase in prices of goods and services, low sales, low profits, hence poor quality
provision of goods and service due to high tax payments.
Moderate rate of Tax for efficiency and effectiveness of the Businesses and the assessment of
Taxes should be on the ability to pay and therefore extra effort and emphasis was put on Tax
payers education and awareness to fully understand tax and provide the business people with
skills for systematic bookkeeping.
Description
A Dissertation Submitted to the College of Applied Economics and Management Sciences of Kampala International University in Partial Fulfillment of the Requirement for a Degree in Business Administration
Keywords
Taxation, Small Businesses, Kansanga Market