Effect of Tax on Small Business in Bauchi Metropolis

Abstract

This research studied the effect of tax on small business in Bauchi metropolis. Specifically, the clear nature of this study design was descriptive survey. The researcher opted for because of describing nature and the state of affairs as it set to archived. The methodology of this study included a population was 1,500 small businesses, critically owned by individuals. The age bracket of the owners of these small businesses are 30 years and above. The whole population was used. The method adopted by the researcher for the selection of the small businesses was by street by street visitations, watching, and counting customers that entered these small businesses within five weeks.  The source of data used for this study was primary. The instrument used for the data collection used was a self-administered questionnaire that was made up of both open-ended and close-ended questions. The instrument was validated by three professors in the faculty of management sciences making available to each all the questionnaires. The method of data analysis was by Chi-square statistical tool employed to test the hypothesis to see deviations of the actual observations (observed frequency) from the expected that led to the acceptance or rejection of the null hypothesis. The study found that small businesses are negatively affected with the imposed taxes by the government of Bauchi State, meaning it negatively affected their businesses in Bauchi metropolis. In conclusion, the rate of amount of tax by the government clearly hindered the activities of small business in Bauchi metropolis. However, the government of the Bauchi State had lots of revenue to gain from small businesses. Recommended among others was that; small businesses in Bauchi metropolis should be encouraged by way of continuous dialogues to pay affordable taxes on the nature of business by business basis, providing improved business environments.  There should be an atmosphere for tax imposition negotiations with small business owners for better understanding.