Abstract

This research is based The Effects of Multiple Taxation on Small/Medium Enterprises in Nigeria" focused on finding the changes in the operations of Small/Medium Enterprises prompted by imposition of multiple taxation. Small and Medium Enterprises play a very important role in development of the Nigerian Economy. Making up about 97% of the entire economy, they serve as a source of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty alleviation and national growth. Tax policy is one of the factors that constitute the Small businesses’ economic environment. This research work tries to establish if any relationship exists between the growth of Small businesses and the tax policy environment in which they operate in Nigeria. Questionnaires were distributed to Small businesses in Abuja, Nigeria and non-probability judgmental sampling method was employed. It was found out that from most Small businesses surveyed; they were faced with the problem of high tax rates, multiple taxation, complex tax regulations and lack of proper enlightenment or education about tax related issues. In order to obtain a vibrant and flourishing SME sector, the tax policy needs to be appropriate such that it will neither be an encumbrance to the Small businesses nor discourage voluntary compliance. A suggested solution is by increasing tax incentives through reducing tax rates and increasing tax authorities’ support services towards small and medium enterprises. Therefore, the objective of this study to examine the relationship between multiple taxation and SMEs survival, and to find out the effects of multiple taxation on 'the growth and development of small/medium scale enterprise. It also looked at the impact of multiple taxation on investment decision of SMEs operators. Descriptive statistics was used to study the data collected for this work through a well-structured questionnaire. The mortality rate of Small and medium enterprises which make up 95% of the economy is very high and these Small and medium enterprises serve as source of employment generation; innovation, competition, and economic dynamism in the development of Nigerian economy. Tax policy is one of the factors that constitutes the small business economic environment

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