Taxation and profitability of small and medium enterprises in Calabar South Local Government Area, Cross River State, Nigeria.
Keywords:
Taxation, Profitability, Small and medium enterprises (SMEs)Abstract
The study examined the impact of taxation on small and medium scale enterprises (SMEs) in Calabar South Local Government Area of Cross River State. Three objectives and hypothesis were formulated to guide the study. The survey design was employed and primary data was collected from two hundred respondents who were randomly selected. The primary data were analysed using simple percentage while the three hypotheses were tested using chi-square (X2) at 0.05 level of significance. Findings from the Chi-square results showed that multiple taxation constitute a major challenge to the performance of SMEs in Calabar South and government is not accountable for taxes on SMEs in Calabar South. Based on the findings, the study recommended that Government should formulate a policy that will reduce illegal taxation on the small and medium enterprises in the country. Furthermore, for Small and Medium Enterprises to get better equipped, have enough funds and survive in a competitive market, the rate of tax levied on the these enterprises should be reduced and Government should design tax policies aimed at encouraging growth and development of SMEs.Downloads
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