Impact of taxes on performance of small scale business enterprises in Ntungamo Town Council

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Publication Type:

Thesis

Source:

Department of Open and Distance Learning, College of Education and External Studies, Makerere University, Volume Bachelor of Commerce, p.49 (2011)

URL:

http://cees.mak.ac.ug/sites/default/files/publications/Report_Odongo.pdf

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 Ntungamo Town Council. The study aimed at assessing the performance of business enterprises in Ntungamo Town Council, 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.