ABSTRACT
The study was carried out to find out the impact of taxes on the performance of Small Scale Business ente1prises in Uganda (SSBs), taking a case study of Busia Municipality. The study aimed at assessing the performance of business ente1prises in Busia Municipality, finding out if taxpayers are aware of all their tax obligations, policies and problems affecting them as well as their businesses. The study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data were collected from both primary and secondary sources. Data were processed and analysed using formal tables, pie chorus, narrative text, and correlations to find out the relationship between the impact of taxes and the performance of small-scale businesses. A total of 50 respondents were considered out of the entire population in the Town Council. The findings indicated that the pe1f01mance of SSBs is affected by stock levels, capital employed, daily expenses, daily sales and the average amount of taxes paid annually. Most business owners are aware of taxes paid, certain of the mode of assessment and little assistance is given as regru·ds tax awareness. The findings revealed the problems faced by the taxpayers as regards the mode of assessment, collection and tax collectors, inefficiency by tax collectors, loss of equipment, loss of sales and loss of stock as a result of taxes. Recommendations on impact of taxes included; improvement on the method of collecting taxes, educating the business community about its different tax rates, introducing a scheme that allows tax payers to pay the tax obligation in installment, and finding a way of assessing the tax the SSBs should pay early in the financial year in order to give enough time to the business to pay up their duties rather than make an assessment and demand for payment spontaneously.
