Taxation and Performance of Small Scale Business Enterprises in Busia Municipality, Uganda.
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Date
2014-12
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics and Management .
Abstract
The study was carried out to find out the impact of taxes on performance of
Small Scale Business enterprises in Uganda (SSBs), taking a case study of
Busia Municipality. The study aimed at assessing the performance of business
enterprises in Busia Municipality, finding out if tax payers are aware of all their
tax obligations, policies and problems affecting them as well as their
businesses.
The study applied both qualitative and quantitative research designs where
interviews and questionnaires were used. Data was collected from both primary
and secondary sources. Data was processed and analysed using formal tables,
pie charts, narrative text, and correlation to find out the relationship between
the impact of taxes and performance of small scale businesses. A total of 50
respondents were considered out of the entire population in the Town Council.
The findings indicated that the performance of SSBs is affected by stock levels,
capital employed, daily expenses, daily sales and the average amount of taxes
paid annually.
Most business owners are aware of taxes paid, uncertain of the mode of
assessment and little assistance is given as regards tax awareness.
The findings revealed the problems faced by the tax payers as regards mode of
assessment, collection and tax collectors, inefficiency by tax collectors, loss of
equipment, loss of sales and loss of stock as a result of taxes.
Recommendations on impact of taxes included; improvement on the method of
collecting taxes, educating the business community about its different tax
rates, introducing a scheme that allows tax payers to pay the tax obligation in
installment, and finding a way of assessing the tax the SSBs should pay early
in the financial year in order to give enough time to the business to pay up
their duties rather than make an assessment and demand for payment
spontaneously.
Description
A research dissertation submitted to College of Economics
and Management in Partial Fulfillment for the Award
of a Bachelor's Degree in Business Administration of Kampala
International University.
Keywords
Taxation, Small Scale Business Enterprises, Performance, Busia Municipality, Uganda