Multiple taxation and small and medium scale enterprises (SMEs) financial performance in Abuja, Nigeria

The main objective of this study was to examine the impact of multiple- taxation on small and medium scale enterprise Finance performance, in Nigeria, particularly Abuja metropolis. This study, surveyed fifteen (15) selected SMEs within the Abuja metropolis precisely AMAC area, with a population of four hundred and fifteen (415) respondents and a sample size of two hundred (200), as calculated using RAOSOFT Sample Size Calculator. A total of two hundred (200) questionnaires were administered. One hundred and seventy-eight (178) copies representing (89%) of the questionnaire were properly completed and retrieved while twenty two (22) questionnaires representing (11%) were not retrieved. Primary source of data was used to gather information for the study and the main instrument of data collection was the questionnaire. The data were presented in tables as frequency distribution in the data analysis; the techniques of percentage frequencies were used. The hypotheses were tested using ANOVA (analysis of variance) at 5% significance level. Having analyzed the data, it was found that the majority of the respondents strongly agreed with all the questions posed with regards to the effects of multiple- taxation and disproportionate multiple- taxation on the finance performance of SMEs in Abuja. The study concluded that there is strong correlation between Multiple-taxation and the financial performance of SMEs in Abuja, Nigeria; there is also strong correlation between Disproportionate multiple taxation practices constitute a major challenge in the budgetary and planning performance of SMEs in Abuja, Nigeria. In view of these findings and conclusions, the researcher recommends, further studies on current taxation policies to ensure that they meet the criteria of good taxes according to Adam Smith in the wealth of nation. Training and awareness programs fortax agents, SMEs owners and theiremployees should be encouraged by the Nigerian Government. Comprehensive vetting of tax levies from government bodies and states by the federal government to weed out unnecessary multiple- taxation. Deregulation of disproportionate taxes to correlate with SMEs incomes. Consolidating all taxes as a lump paid directly to an assigned government account in correlation to income, after which the tax authorities can disseminate according to an agreed sharing ratio to various government purses instead of having multiple and closely related taxes at the same time.