TABLE OF CONTENTS
DECLARATION i
APPROVAL ii
DEDICATION iii
ACKNOWLEDGEMENT iv
LIST OF TABLES viii
ABBREVIATIONS ix
ABSTRACT x
CHAPTER ONE 1
1.0. Background of the study 1
1.1.1. Historical background 1
1.1.2. Theoretical background 2
1.1.3. Conceptual background 3
1.2 Statement ofthe problem 3
1.3. Purpose of the study 4
1.4. Objectives of the study 4
1.5. Research questions 5
1.6. Research hypothesis 5
1.7. Scope of study 5
1.7.2. The sample scope 5
1.8. Significance of the study 6
1.9. Limitations of the study 6
1.10. Conceptual framework 7
CHAPTER TWO 9
LETERATURE REVIEW 9
2.0. Introduction 9
2.1. Conceptual review 9
2.2. Theoretical review 12
2.4. Related literature (studies) 17
V
CHAPTER THREE .23
METHODOLOGY 23
3.0. Introduction 23
3.1. Sources of data 23
3.2. Research design 23
3.3. Target population 23
3.4. Sampling technique 24
3.5. Sample size 24
3.6. Research instrument 24
3.7. Data analysis 24
CHAPTER FOUR 26
DATA PRESENTATION, ANALYSIS, AND INTERPRETATION 26
4.0. Introduction 26
4.1. Demographic characteristics 26
4.2. The period spent operating business 29
4.3. The period spent in business in relation to ownership of the business 30
4.4. The responses about the status of economic activity 32
4.5. Responses about some forms of taxes levied in Kawempe division 34
4.6.. Responses about the effect of taxation on the level of economic activity 36
4.7. Responses about convenience in paying taxes 39
4.8. Responses concerning reliability of the revenue collection team 42
4.9. Testing the relationship and significance between taxation and the level of economic
activity 44
CHAPTER FWE 46
SUMMARY,DISCUSSION, CONCLUSION, AND RECOMMENDATION 46
5.0. Introduction 46
5.1. Summary 46
5.2. Discussions 47
5.3. Conclusion 48
5.4. Recommendations 48
5.5. Further research 49
ABSTRACT The study explored the effect of taxation on the level of economic activity in the three areas of Kawempe division that include; Kazo, Bwaise, and Lugoba. Taxation is a very significant factor to consider if the level of economic activity in an area is to increase. This is in such a way that tax rates greatly affect economic activities both positively or negatively depending on the way they are set. In the study a descriptive research design was used and a self -administered questionnaire was adopted and data was collected from 100 respondents. The respondents were categorized into male and female, ownership of businesses, and also the time spent operating the business. The study was analyzed using SPSS and also the findings were obtained using percentages, ANNOVA, and regression analysis. The finding indicated that the level of economic activity is associated with ownership of a business, period spent in business and also the age segments of individuals. Also the study indicated that men share the largest portion in operating business activities compared to women. Also to summarize the study discovered that taxation is not significant enough to explain the effectiveness of economic activities in the selected areas of Kawempe division.
