Taxation And Business Performance Of Small And Medium Enterprises In Makindye East Division, Kampala District, Uganda

ABSTRA~

This study embarked on “Taxation and Business performance of Small and

Medium enterprises in Makindye east division, Kampala district, Uganda”. The study

was made up of three objectives and these include; to determine the level of

taxation imposed on SMEs in Uganda, to determine the level of business

performance of SMEs in Uganda and to establish whether there is a relationship

between taxation and business performance of SMEs in Uganda. The study used

correlation and descriptive design and statistical package for social scientists (SPSS)

was used for data analysis. The study findings revealed that the level of taxation

imposed on SMEs was high (58%) and the study findings on the level of business

performance of SMEs was fluctuating due to taxes but also the findings further

revealed that there is a significant relationship (99%) between taxation and business

performance of SMEs in Uganda. The researcher recommended that SMEs should be

given incentives, business community should be trained, business community should

be protected against counterfeiters, smugglers, URA should engage in social

corporate responsibilities, government should embark on infrastructure development

and government should protect infant industries against imported goods. The

researcher also recommends that government should create a conducive credit

market environment for SMEs to easily access credit at very low interest rate for the

business community to grow and expand their businesses. The researcher suggested

the following areas for further research; Taxation and Growth of SME5, The

contribution of taxes to the growth of SMEs, The contribution of SMEs to job creation, Infrastructure development and performance of SMEs in Uganda.