UMUKORO Stirruph1 ONOU Dafe Paul2
1Department of Business Administration, School of Business, Administration and Management Studies Auchi Polytechnic, Auchi, Edo State
2Department of Accounting, School of Business, Administration and Management Studies
Auchi Polytechnic, Auchi, Edo State
Abstract
The paper looked at how multiple taxation affects small and Medium Scale Enterprises (SMEs) which are regards as the engine room of development of every nation including Nigeria. SMEs play important role for the growth and development of every economy across the world. However, multiple taxes imposed on SMEs are a major factor responsible for why many are struggling to survive in Nigeria and some have even folded up as a result. Unfortunately, some of these taxes are not only huge, majority are illegal. Equally sad, government appears not to be doing anything about them. Rather, it could be argued that government in one or two ways encourages the practice. The paper therefore reviewed extant literature conceptually to determine the effects of multiple taxes on the financial performance of SMEs in Nigeria. There was introduction, conceptual, theoretical and empirical reviews before discussion and conclusion. Based on the literature reviewed, it was concluded that multiple taxes are a major disincentive to investment in the SMEs. The paper therefore recommended among others that government should harmonize the taxes on SMEs with a view to streaming them.
Keywords: Multiple Taxes, Small and Medium Enterprises, Performance, SMEDAN, BOI,