The impact of diverse tax policies on the performance of Small and Medium Enterprises in Nigeria
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Abstract
Despite having clear and specific legislation that contains the list of the fees and taxes to be collected, all tiers of government, including ministries, departments, and agencies, are involved in collecting additional taxes from Small and Medium Enterprises (SMEs) that are not included in this list. These multiple taxes, called by various names, increase the cost of doing business and affect the survival of SMEs in Nigeria. Therefore, this study used a content analysis method to systematically examine the extent and impact of these unlisted taxes on SMEs. By analyzing legislative documents, government reports, interviews with SME owners, and academic publications, the study identifies patterns in tax imposition practices and explores their economic implications. The findings reveal significant discrepancies between the official tax list and actual taxes collected, highlighting transparency issues and additional financial burden on SMEs. This study provides recommendations for policy reforms to streamline tax collection and enhance the business environment for SMEs in Nigeria.
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