EFFECTS OF TAXATION ON SMALL AND MEDIUM ENTERPRISES (SMES) GROWTH IN NIGERIA.

ABSTRACT This study seeks to examine the Effect of Taxation on Small and Medium Enterprises (SMEs) Growth in Nigeria. The scope is chosen based on the availability of time series data on the dependent variable and independent variables. However, the following objectives were formulated; to Examine the effect of taxation on Small and Medium Scale Enterprises (SMEs) in Nigeria; the effect of value-added tax on Small and Medium Scale Enterprises (SMEs) in Nigeria, Establish Ascertain the effect of taxes on exports (% of tax revenue) on Small and Medium Scale Enterprises (SMEs) in Nigeria. The study had a population of 200,000 out of which a sample size of 390 was realized using structured questionnaire. The analysis was done with the aid of simple percentages and tables and the hypotheses tested through using chi-square method. Thus, the research design entails model specification, estimation and evaluation technique, procedure, variable measurement and discussion, sources, and nature of data. The following recommendation were recommended; encourage targeted profit tax reforms: Since profit tax (PT) has a statistically significant positive effect on GDP, Nigeria federal government can consider implementing targeted profit tax systems. This can involve reducing tax burdens on individuals or providing tax incentives to businesses that create employment opportunities. Such measures can stimulate increase in the standard of living and increase overall economic output; evaluate and reform tax export policies: Tax exports (TX) have a statistically significant positive relationship with GDP. To boost economic growth, Nigeria government should evaluate and reform export tax policies. Reducing tax burdens on exports or implementing export-oriented tax incentives can encourage businesses to engage in international trade and boost export-led growth; streamline and simplify tax systems: However, simplifying and streamlining the value-added tax (VAT) system can directly positively affect economic growth. Simplified tax procedures can reduce administrative burdens, improve compliance, and create a more business-friendly environment, fostering economic growth.