Abstract

The study, "The Effects of Multiple Taxation on Small-Scale

Enterprises in Ebonyi State" focused on finding the changes in the

operations of Small-Scale Enterprises prompted by imposition of multiple

taxation. It also looked at the impact of multiple taxation on investment

decision of SSEs operators. Descriptive statistics was used go study the

data collected for this work through a well-structured questionnaire. The

Godman's and Kruskal's Gamma, a non-parametric measures of

association was also employed to determine the degree of association

between multiple taxation and the growth of Small-Scale Enterprises.

These variables were ranked in ordinal level of measurement.

It was discovered that over 60% of the respondents complained that tax

expenditure takes between 50 - 60% of their total turnover. From the

Goodman's and Kruskal's Gamma, it was found that multiple taxation and

the growth of SSEs are negatively associated. The Gamma coefficient

was found to be -0.54. The work revealed that SSE ~ntrepreneurs pay

on average 12 - 15 taxes varying according to sectors and geographical

location of the Enterprise. Among other recommendations of the work

include, the introduction of simplified taxation for SSEs and that

government especially local government should curtail h_er interference

with SSE especially unofficial interference. This done, SSEs will surely

grow in Ebonyi State.

TAB'LE OF CONTENTS

Title page .................................................................. i

Approval page .......................................................... i i

Dedication .................................................................. iii

Acknowledgment ...................................................... IV

Abstract ...................................................................... V

Chapter One . Background of the study

1 . 0 Introduction ................................................................ 1 - 4

1 Social-Economic Background of Ebonyi State ....... 4 - 5

1.2 Statement of th, e Problem ........................................... 5 - 7

1.3 Objective of the Study ................................................. 7

1.4 Research Hypotheses ................................................. 7

1.5 Significance of the Study ............................................. 7 - 8

Chapter Two . Literature Review

Theoretical Literature ................................................... 9

2.0 An Overview of Tax ...................................................... 9 - 1 0

2.1 Tax Multiplicity ............................................................... 10 - 12

2.2 Relevance of SSE to the Development of National

Economy ......................................................................... 12 - 15

2.3 Effects of Taxes (Multiple Taxation) on Small-

Scale Enterprises ...................................................... 15 - 16 ...

2.4 Empirical Literature .................................... .............. 17 - 18

Chapter Three

3.0 Methodology ................................................................... 19

3.1 Sampling Procedure ...................................................... 19-20

3.2 Sources of Data/Questionnaire Design .................... 20

3.3 Data Analysis .................................................................. 20 - 21

3.4 Justification of 'the Method and the Study ............... 22

Chapter four

4.0 Presentation of Results ................................................ 23

4.1 Introduction .................................................................... 23

4.2 Distribution of SSEs in the Selected Areas of

Study ................................................................................. 23

.... vii

Distribution of SSEs According to Areas and

Sector ............................................................................. 24 - 25

Distrjbution of Respondents According to New

Investment Activities and Growth Potential ............ 25 - 26

Government Policies and Interference ..................... 27 - 29

Taxation ...................................................................... 29 - 32

Calculations and Presentation of the Goodman's

and Kruskal's Gamma Coefficient .............................. 32 - 34

Chapter Five

Summary, Conclusion and Recom'mend-ations ....... 35

Summary of the Study ......................... ....................... 35 -36

Conclusion ..................................................................... 37

Recommendations ......................................................... 37 - 38

REFERENCES ................................................................ 39 - 42

Appendix ......................................................................... 43 - 49