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Taxation Policies and SME Growth in Uganda: A Case Study of Small Businesses in Kampala

This study examined the impact of taxation policies on the growth and sustainability of small businesses in Kampala,
focusing on the role of tax rates, the complexity of tax procedures, and tax incentives and exemptions. Data was
collected from a sample of small businesses, and multiple linear regression analysis was conducted using SPSS and
STATA to explore the relationships between taxation policies and business performance. The findings revealed that
higher tax rates negatively affected business profitability, while the complexity of tax procedures hindered operational
efficiency and compliance. In contrast, tax incentives and exemptions were found to have a positive impact on business
growth and sustainability. The study concluded that taxation policies, including simplified tax procedures and targeted
incentives, are critical factors influencing the success of small businesses in Kampala. Based on these findings, it was
recommended that policymakers review tax rates, streamline tax procedures, and expand access to tax incentives to
foster the growth of small businesses.

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