INTERNATIONAL JOURNAL OF STUDENT PERFORMANCE AND EDUCATIONAL RESEARCH

Abstract

This paper is to Assessed the impact of multiple taxation on sustainability of small and medium scale enterprises in the South South, Nigeria. The objectives is to identify the challenges of Nigerian tax policies and possible ways of addressing the impact of multiple taxation on sustainability of small and medium scale enterprises. Population of 200 staff was used and sample Size of 133 using Taro Yamani formula. Questionnaires were distributing to small business enterprises and non probability sampling method was employed. Small and Medium Enterprises play a very important role in development of the Nigerian Economy making up about 97% of the entire economy and they serve as a sources of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty reduction and national growth. From the findings most Small businesses surveyed; they were faced with the problems of high tax rates, multiple taxation, complex tax regulations and lack of proper enlightenment or education about tax related issues. The study revealed a significant negative relationship between taxes and the business’ ability to sustain itself and to expand. 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.