EFFECT OF MULTIPLE TAXATION ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE BUSINESS ENTERPRISES (A CASE STUDY OF BIGSHOW SUPERMARKET, LAFIA, ANOINTED CHILD CAFÉ, LAFIA AND LAVISTA FRIES LTD, LAFIA)

ABSTRACT This study examines the “Effect of Multiple Taxation on the Performance of Small Medium Scale Business Enterprises”. the population of the study consist of staff of 3 staff of Bigshow Supermarket, Lafia, 5 staff of Anointed Child Café, Lafia and 32 staff of Lavista Fries Ltd, Lafia totalling 40 staff. A distribution of 40 copies of questionnaire were administered to the respondents and 36 copies of the questionnaire were filled and returned. Simple Table and Percentages were used to analyze the data collected through the questionnaire. It was discovered that taxation has significant effect on performance of SMEs. It was discovered that Bigshow Supermarket, Lafia, Anointed Child Café, Lafia and Lavista Fries Ltd, Lafia pay their taxes to more than two agencies such as Federal Inland Revenue Service, State Inland Revenue Service and Local Government Revenue Authority and the study recommended that Tax collection SMEs should be defined with respect to which government should collect certain taxes. This will avoid the three tiers of government collecting taxes of the same type from the same particular organization. Government should also put a policy in place to avoid illegal taxes, such as community levy, boys or youth levy and as well as association or union levy. These levies exists among all the local governments in the state where most of these SMEs operate including the State capital. Government should ensure that SMEs are giving tax holidays as a way of encouragement for their smooth take off. Hence, government should discontinue the excessive taxes they collect from the SMEs so that they can continue to exist as an entity.