Abstract

The report explored the effect of taxation on mobile money services a case of Makindye East division, Kampala district. The specific objectives of the study were; to establish the level of taxation on mobile money services in Makindye East Division Kampala district, to determine the level of mobile money services in Makindye East Division Kampala district and to establish the relationship between taxation and mobile money services in Makindye East Division Kampala district. The study used both cross-sectional research design and descriptive design. The study used a stratified random sampling to obtain the primary data. 80 respondents were sampled from the population of 100. The study used the self administered questionnaires to obtain the data from respondents. Data collected was analysed using SPSS, the study found out that, there is a negative relationship between taxation and mobile money services. The researcher recommends mobile money users to always try to pay their required taxes in time so that the government activities are run in efficient manner. Also, the researcher recommends the government to diversify the mobile money industry with the technology which eradicates fraud while making transactions. The study provided conclusions and recommendations basing on the analysed data.

V

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

Abstract V

List of Abbreviations X

CHAPTER ONE 1

INTRODUCTION 1

1.1 Background of the study 1

1.2 Problem statement 4

1.3 Objectives of the study 5

1.3.1 Purpose of the study 5

1.3.2 Specific objectives of the study 5

1.4 Research Questions 5

1.5 Research Hypothesis 6

1.6 Scope of the study 6

1.6.1 Content scope 6

1.6.2 Geographical Scope 6

1.6.3TimeScope 7

1.7 Significance of the study 7

1.8 Operational definition of the key terms 8

vi

CHAPTER TWO

LITERATURE REVIEW 9

2.0 Introduction

2.1 Theoretical Review 9

Technology Acceptance Model 9

Ability —to~pay approach 10

2.2 Conceptual Framework 10

2.3 Conceptual Review 11

2.3.1 Ability to pay 11

2.3.2 Certainty 12

2.3.3 Convenience 12

2.3.4 Money transfer 12

2.3.5 Savings and loans 13

2.3.5 Paying bills 14

2.3.6 Buying airtime 14

2.4 Empirical studies 15

2.5.Research Gaps 18

2.5.1 Literature gap 18

2.5.2 Empirical gap 19

2.5.3 Theoretical gap 19

CHAPTER THREE 21

METHODOLOGY 21

3.0 Introduction 21

VII

3.1 Sources of Data .21

3.2 Research design 21

3.3 Study population 21

3.4 Sampling technique and Sample size of the study 22

Table 3.1 22

3.5 Research instrument 23

3.6 Reliability of the instrument 23

3.7 Data analysis 23

3.8 Ethical Considerations 24

CHAPTER FOUR 26

RESULTS AND DISCUSSION FINDINGS 26

4.0 Introduction 26

4.1 Characteristics of mobile money agents 26

Table 4.1: Distribution of agents’ characteristics 26

4.2 Mobile money services 27

4.2.3. Mobile money agents’ responses on buying airtime 28

Table 4.2.3: Distribution of agents’ responses on buying airtime 29

4.2.4. Mobile money agents’ response on savings and loans 29

Table 4.2.4: Distribution of agents’ responses on savings and loans 30

4.2.5. Mobile money agents’ response on paying bills 30

Table 4.2.5. Distribution of agents’ response on paying bills 31

4.3. Mobile money agents’ response on taxation 31

4.3.1. Agents’ response on ability to pay 31

VII

Table 4.3.1: Distribution of agents’ response on ability to pay 32

4.3.2. Agents’ response on certainty 32

Table 4.3.2. Distribution of agents’ response on certainty 33

4.3.3. Agents’ response on convenience 33

Table 4.3.3: distribution of agents’ response on convenience 34

Table 4.4. Relationship between taxation and mobile money services 35

4.5. Discussions 36

CHAPTER FIVE 37

SUMMARY FINDINGS, CONCLUSIONS AND RECOMMENDATION 37

5.0 Introduction 37

5.1. Summary findings 37

5.2 Conclusion 38

5.3 Recommendations 38

5.4 Areas for further research 38

References 39

Appendix 1: Questionnaire 41

Appendix 2: Research Time Frame 45

Appendix 3: Budget 46