Effects of Taxation on the Productivity of Employees in the Central Region: A Case Study of Mukwano Group of Companies

ABSTRACT

The study carried out was based on the Effects Of Taxation On The Productivity Of Employees In The Central Region and the objectives of the study were To establish the effects of taxation policies on employee productivity. To examine the various socio-economic environment factors that affect employee productivity in the company. To identify the barriers to efficient tax administration in an organization Mukwano group of companies was the case study because being in the city it's in the central region proximity to urban centres which is an incentive to taxation. The researcher studied the most likely outcomes of taxation, He further concentrate on trade taxation policies with regard to how these policies could be implemented and what the consequences would be. The researcher studied the effects of taxation on the productivity of employees in the central region, covering a period of 10 years, from 2007-2017. The study targeted a population of 100 employees in Mukwano group of companies. The sample size of 60 was appropriate since it fell within the sampling model. The sampling techniques are processes for selecting suitable or representative part of population for the purpose of determining characteristics of the whole population. The selection population was homogeneous and the researcher also used purposive sampling and stratified random sampling to choose specific respondents basing on their familiarity with the subject and their ability to give information. The primary data was obtained through field survey as well as secondary data through tabulation, interpretation diagrammatic representation. The finding showed that the study was carried out to establish the effects of taxation policies on employee productivity, like Personal income tax and social security contributions, Corporation tax, Taxes on consumption, Poll tax, Value Added Tax and Computerization. It was found out that the majority of respondents strongly agreed, followed by those who agreed. The number of respondents who were not sure, disagree and strongly disagree was quite too low. The study, therefore, concluded that the socio-economic environmental factors that affected employee productivity, it hindered the various operations of the company to the fullest, most especially when attributed to the factors such as Performance evaluations or appraisals, Remuneration, Leadership style, Career movements, and Economic Growth. The study recommended improvement on the method of collecting taxes, educating the business community about its different tax rates, introducing a scheme that allows employees to pay the tax obligation in installment, and finding a way of assessing the tax the company should pay early in the financial year in order to give enough time to the company to pay up their duties rather than make an assessment and demand for payment spontaneously