Effect of Multiple Taxation on the Performance of Small and Medium Scale Enterprises in Gombe State
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Date
2021
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Abstract
The role of Small and Medium Scale Enterprises (SMEs) in development process has been in the forefront of policy debates in developing countries. There are contentions that the performance of SMEs as engine of growth that adversely affected when subjected to complex taxation system. Therefore, this study seeks to assess the effect of multiple taxation on SMEs in Gombe State, Nigeria. The study used crosssectional survey design. Questionnaire was used to obtain data from the targeted respondents in two (2) selected Local Government Areas (LGAs) of the state. The SMEs within the selected LGAs were recruited using stratified sampling from Akko and Gombe LGAs. The reason for selecting these LGAs was because, majority of the registered SMEs are located in the Areas. The study administered 207 questionnaires from which 203 were retrieved, making 98% return rate. Descriptive statistics was used in analysing the collected data. Our findings revealed two different identifiable patterns of multiple taxation paid by SMEs in Gombe State, while the Local Governments (LGs) were observed to levy the most complex multiple tax. In addition, responses to multiple tax perception questions contained in the questionnaire reveals that multiple tax affects the operation of SMEs. The study recommended that multiple taxation be designed in a unified fashion where only one tax would be implemented
while the different authorities work out a formula through which the revenue would
be shared.