ANALYSIS OF THE IMPACT OF TAXATION POLICIES ON SMALL SCALE BUSINESS IN OGBOMOSO SOUTH LOCAL GOVERNMENT, OYO STATE NIGERIA

This research analyzed the intricate relationship between taxation policies and small-scale business in Ogbomoso South Local Government. Oyo State, Nigeria. Recognizing the important roles of small-scale business in driving economic growth, reducing poverty, and fostering social equity, the study examines the multifaceted impacts of taxation policies on these businesses. Through a comprehensive literature review, various perspectives on taxation policies, small business characteristics, and challenges faced by entrepreneurs are synthesized. Employing a descriptive survey methodology, the research surveys a sample of 50small-scale business owners selected through stratified sampling. The study reveals that 62% of respondents perceive negative impacts resulting from taxation policies, particularly affecting profit margins and operational viability. Despite the challenges posed, 32% acknowledge some positive impacts, while 10% report negligible effects. Based on the findings, the research recommends tailored tax incentives, a streamlined compliance procedure, financial education and support programs, and the establishment of sector-specific advisory committees. These recommendations aim to mitigate the adverse effects of taxation policies on small- scale businesses and foster a conducive environment for entrepreneurship and economic development. Overall, this research contributes to the understanding of the dynamics between taxation policies and small-scale businesses, offering insights for policymakers, tax authorities, and stakeholders to formulate effective strategies that support the growth and sustainability of small enterprises in Ogbomoso South and similar regions.