IMPACT OF TAXATION ON THE PROFITABILITY OF MEDIUM SCALE ENTEPRISES IN ENUGU: CASE STUDY OF ROBAN STORES
Abstract
This study examines the impact of taxation on the profitability of small-scale enterprises in Enugu State, with a particular focus on Roban Stores, a medium-scale retail business. The research aimed to evaluate how Company Income Tax (CIT) and Value Added Tax (VAT) influence the Profit After Tax (PAT) and Sales Turnover of the enterprise. Grounded in the Ability-to-Pay Theory and Benefit Theory, the study employed a longitudinal design using secondary data spanning 2015 to 2024. Data analysis involved descriptive statistics and multiple regression models to test the stated hypotheses. The findings revealed that CIT significantly affects PAT, while VAT positively influences sales turnover. The study concludes that tax burdens have both suppressive and stimulative effects depending on the type of tax involved. Recommendations include implementing tailored tax policies that support medium-scale enterprises through targeted reliefs and administrative transparency.
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.