MJAMR

The Effect of Taxation Policy on the Performance of Small Business Enterprises. A Case of Nakawa Division Central Market

Ogwang Paskal, Ngiri Andrew


Abstract

The study was carried out to find out the impact of taxation policy on the performance of small business enterprises in Uganda, taking a case study of Nakawa central market. The study aimed at assessing the relationship between taxation policy and the performance of small business enterprises in Nakawa division, finding out the effect of taxation on the profitability of small business enterprises in Nakawa division central market. 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 analyzed using formal tables, pie charts, narratives texts, and correlation to find out the relationship between taxation policy and the performance of small business enterprises. A total of 60 respondents were considered out of the entire population in the market. The testing of the relationship between the variables was tested using Pearson correlation coefficient. This was used because the taxes and business performance were numerical. From table above, it is clearly indicated that there is a strong relationship between performance of small-scale businesses and the average amount of tax paid in Nakawa market. This indicated by positive results of Pearson Correlation, where r = 0.811, p<.01. It therefore implied that taxation strongly affects the performance of small businesses and tax assessors should always do their performance before taxing them. Recommendation on the effect of taxes included; improvement on the method of collecting taxes, educating the business community about the different tax rates, introducing a scheme that allows tax payers to pay the tax obligations in installment, and finding a way of assessing the tax the SBs should pay early in the financial year in order to give enough time to the business to pay their duties rather than make an assessment and demand for payment spontaneously.

Keywords

taxation policy performance and small business enterprises
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Ogwang Paskal & Ngiri Andrew (2023). The Effect of Taxation Policy on the Performance of Small Business Enterprises. A Case of Nakawa Division Central Market. Metropolitan Journal of Academic Multidisciplinary Research, 2(9). https://journals.miu.ac.ug/pages/article.php?article_id=1571

More in This Issue

View full issue →
11
Community Perception Towards Child Abuse in Uganda. A Case Study of Buloba Sub-County, Wakiso District
Nalubowa Hadijah, Wamimbi Dennis
community perception and child abuse
12
Copper Mining and Household Welfare: A Case Study of Kilembe Copper Mines in Kasese District.
Lumumba Samuel, Kamugisha Nelson
copper mining household and welfare
13
Customer Satisfaction and Organization Performance a Case Study of Sumz Foods Industries
Tumaini Grace, Enock Zikusooka, Dr Ariyo Gracious Kazaara
customer satisfaction and organization performance
14
Decentralisation and Economic Development in Rural Communities. A Case Study of Mityana District
Katasi Asha, Kyomuhendo Charlotte, Sarah Akampurira
decentralisation economic development and rural communities
15
E-Procurement and Supply Chain Management a Case of Uchumi Supermarket, Kampala Uganda
Balisanyuka Paul Mulunzi, Otim John William, Alex Irumba, Kaziro Nicholas
E-Procurement and Supply Chain Management