The Impact of Taxation on the Performance of Small-Scale Business in Habaswen Shopping Centre of Wajir District, Kenya

Hassan Mathobe Bba

College of Applied Economics and Management Sciences Kampala International University, Uganda

ABSTRACT

The examined the impact of taxation on the performance of small businesses in Habaswen shopping centres. It was found that taxation has a significant effect on the performance of small businesses, as evidenced by low profits, low sales, and poor-quality provision, all of which result from high taxation. Additionally, poor performance is marked by inefficiency and ineffectiveness due to low profitability and the high cost of running the business because of high taxes. It is recommended that tax authorities and the government consider not only revenue generation but also the economic effects of taxation. While small businesses, individuals, companies, and other business organizations have an obligation to pay taxes, these taxes should facilitate government efforts in providing essential services such as health, education, and infrastructure like roads. Taxes should benefit all stakeholders and promote the overall economic well-being of the community. More so, the taxable capacity of small businesses should be determined by assessing their ability to bear the tax burden. This ensures that the tax levy is not excessively high, allowing small businesses to continue operating with enough disposable income left. Qualified personnel should conduct tax assessments and collections to avoid overcharging for the self-interest of tax collectors and administrators.

Keywords: Government, Impact, Small scale business, Tax administrators, Taxation.

CITE AS: Hassan Mathobe Bba (2024). The Impact of Taxation on the Performance of Small-Scale Business in Habaswen Shopping Centre of Wajir District, Kenya. RESEARCH INVENTION JOURNAL OF LAW, COMMUNICATION AND LANGUAGES 3(1):75-80.