The impact of taxes on the performance of small scale business in Uganda, Case study Kikuubo lane Kampala city
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Date
2007-06
Authors
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Publisher
Kampala International University, Faculty of Business and Management
Abstract
The study was about the impact of taxes on the performance of small business in Uganda
case of Kikuubo lane-Kampala city. Kikuuko lane was selected because it is the busiest
small business center with over 1000 traders. As regards the study 250 small business
firms were selected and this gives a fair representation of small business.
Many small business owners have not given greater attention to a wide range of taxes
levied on their businesses and the methods used by the tax authorities to collect taxes.
Suggestion and proposals have been raised as to how taxes levied on small businesses
affect their performance.
For that matterthe study aimed at establishing the impact of taxes on performance of
small scale business, the types of tax levied, customers response to products as price
changes due to taxes levied and to suggest how taxation policies can be improved to
favour small scale business in Kikuubo lane and Uganda at large.
Questionnaires were used as the basic research tool and sampling as a method of
research. The study included field research, library research and document analysis.
The study revealed that almost all small business firms pay taxes that is direct and
indirect taxes. The findings indicated that taxes have a great impact on the performance
of small business. Better performance is dependent on profitability. Higher taxes levied
lowers net profits hence poor performance by most small businesses in Uganda.
The study concluded with recommendations towards improving taxation policies in
Uganda for example taxes, should be collected during the period when the small business
firms are making profits; they should not be collected immediately after festival seasons
like Christmas.
Description
A dissertation submitted to the Faculty of Business and Management in partial fulfilment of the requirement for the Award of a Bachelor’s Degree in Business Administration of Kampala International University
Keywords
taxes, small scale business