THE EFFECTS OF TAXES ON THE PERFORMANCE OF MICRO ENTERPRISES: THE CASE OF NJINIKOM SUB DIVISION

By NGONG CLOUDIN BIH | Department of Business and Management Studies | Accounting and Finance

ABSTRACT

Taxes play an important role in the growth of micro, small and medium enterprises (MSMEs). In the low-income countries like Cameroon, the role of MSMEs is critical in pushing the socio-economic development agenda of the country forward. Therefore, alignment of the tax system to the environment specific MSME growth needs can be considered an important agenda for the political, economic and financial policymakers.

This study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data was collected from both primary and secondary sources. Data was processed and analyzed using frequency tables and narrative text, to find out the relationship between taxes and performance of Micro enterprises. A total of 50 respondents were considered in Njinikom Sub-Division.

The findings indicated that the performance of Microenterprises is affected by stock levels, capital employed, daily sales and the average amount of taxes paid annually.

Most business owners are aware of taxes to be paid, uncertain of the mode of assessment and little assistance is given as regards tax awareness.

The findings revealed the problems faced by the taxpayers as regards 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 the impact of taxes included; improvement of the method of collecting taxes, educating the business community about different tax rates, introducing a scheme that allows taxpayers to pay the tax liability. Download