Taxation and Financial Performance of Small Scale Businesses in Uganda: A Case Study of Kansanga Market-Kampala

TABLE OF CONTENTS

DECLARATION ............................................................................................................................ i

APPROVAL .................................................................................................................................. ii

TABLE OF CONTENTS ............................................................................................................. iii

LIST OF TABLES ....................................................................................................................... vi

LIST OF FIGURES .............................................................................. ............ vii

CHAPTER ONE .......................................................................................................................... 1

INTRODUCTION ....................................................................................................................... 1

Background of the Study ............................................................................................................... I

1.1.lHistorical Paspective ........ .................... ......................... ................................ ........................ 1

l .1.2 Theoretical Perspective ........................................................................................................ 2

1. I .3. Conceptual Perspective ............. , ......................................................................................... 3

1.1.4 contextual perspective .......................................................................................................... 4

1.2 State1nent of the Proble1n ........................................................................................................ 4

1.3 Purpose of the Study ................................................................................................................ 5

1.4 Objectives of the Study .. ......................................................................................................... 5

1.5 Research Questions ................................................................................................................. 5

1.6 Scope of the Study ................................................................................................................... 5

1.7 Significance of the Study ........................................................................................................ 6

1.8 Definition of key tenns ............................................................................................................ 6

1.8.1 Tax ......................................................................................................................................... 6

1.8.3 Market .................................................................................................................................. 6

CHAPTER TWO ......................................................................................................................... 7

LITERATURE REVIEW ........................................................................................................... 7

2.0 The Concept of taxation .......................................................................................................... 7

2.1 Conceptual framework ............................................................................................................ 7

2.0. l Tax ........................................................................................................................................ 8

2. I Tax rates levied on smal I scale businesses of Kansanga Market. ........................................... 8

2.2 Performance of small scale businesses of Kansanga Market ................................................ 10

2.3 Problems encountered by small-scale businesses in trying to comply with tax policies ...... 11

2.3.1 Tax benefits ......................................................................................................................... 11

2.3.2 Tax benefit and small scale businesses growth in developing and emerging countries ..... 13

2.3.3 Main Federal Tax Benefits for Small Business .................................................................. 13

2.3.4 Performance of small scale business .................................................................................. 14

2.3.5 Policies Adapted to Promote Small scale businesses ......................................................... 16

2.3.6 Taxation and business performance ................................................................................... 16

2.4 The relationship between tax benefits and performance of small scale businesses .............. 16

CHAPTER THREE .................................................................................................................. 20

METHODOLOGY .................................................................................................................... 20

3.1 Research Design .................................................................................................................... 20

3.2 Target Population .................................................................................................................. 20

3.3 Sample Size ........................................................................................................................... 20

3.4 Sampling method ................................................................................................................... 20

3.5 Research instruments ............................................................................................................. 21

3.5. 1 Questionnaire ..................................................................................................................... 21

3.5.2 Interviews ......................................................................................................................... 21

3.6 Data Analysis ........................................................................................................................ 21

3.6.1 Quantitative Analysis ......................................................................................................... 21

3.6.2 Qualitative Data Analysis ................................................................................................... 21

3.7 Validity and reliability of the instrnments ............................................................................. 21

3.8 Ethical consideration ............................................................................................................. 22

3.9 Limitations of the study and their solutions .......................................................................... 22

CHAPTER FOUR ..................................................................................................................... 23

PRESENTATION OF FINDINGS, DATA ANALYSIS AND INTERPRETATION ......... 23

4.0 Introduction ........................................................................................................................... 23

4.1 Socio-Demographic characteristics of the study population ................................................. 23

4.1.1 Gender category of respondents ......................................................................................... 23

4.1.2 The age group of the respondents ....................................................................................... 24

4.1.3 The marital status of respondents ....................................................................................... 25

4.1.4 The level of education attained by respondents ................................................................. 26

4.2 Tax rates levied on small-scale businesses in Kansanga market.. ......................................... 27

4.3 The performance of small scale businesses in Kansanga market.. ........................................ 29

4.4 Problems faced by tax payers in Kansanga market.. ............................................................. 30

CHAPTER FIVE ....................................................................................................................... 33

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ................ 33

5.0 Introduction ........................................................................................................................... 33

5.1 Summary of findings ............................................................................................................. 33

5.2 Conclusion ............................................................................................................................. 33

5.3 Recommendations ................................................................................................................. 34

5.4 Areas for further research ...................................................................................................... 34

REFERENCES ............................................................................................................................ 35

APPENDICES ............................................................................................................................. 35

APPENDIX I: QUESTIONNAIRE ............................................................................................. 37

APPENDIX (II): INTERVIEW GUIDE ..................................................................................... 41

Appendix III: TIME FRAME ....................................................................................................... 43

APPENDIX IV: BUDGET .......................................................................................................... 44

APPEND[X V: QUESTIONNAIRE ........................................................................................... 45

APPENDIX (VI): INTERVIEW GUlDE .................................................................................... 49