Taxation Of Micro Finance Intitutions In Uganda (Acase Study Of Pride Microfinance Ltd- Kabalagala Branch)

ABSTRACT

cro finance institution in Uganda seeks to provide clients from poor households :h arrange of money management and banking services. Micro finance is portant to the well being of the society because it improves on the welfare, wealth d general standards of living for those people involved in micro finance activities. spite of finance institution effort to support income earners by providing ancials, there is high taxation problem. The problem arising out of these :essive levels of taxation is that they are likely to have negative effects on the ancial performance of micro finance institutions. sing on above problem, the study was set to assess the impact of taxation on ·formance of micro finance institutions in Uganda and also to determine Factors ,ponsible for the taxation in micro finance institutions in Uganda. The research s based on qualitative case study design of descriptive nature and analytical ,ed on structured questionnaires where the source of data for this research was mary and secondary source. ~ findings of the study revealed that taxation are the most important factor that ds to losses, which in the long run lead to capital erosion. The analysis of the :lings indicates structure of various program has influenced the high interest rate nificantly he lack of grace period high interest and poor taxation implosion are 11ctural problem that need to be addressed seriously. ~ research recommends that micro finance institution should design possible ation micro finance institution in Uganda by introduce exit surveys for better formance.