Tax Policy and Performance of Small and Medium Scale Enterprises in Anambra State, Nigeria

Abstract

This research focuses on tax policies and the performance of small and medium-scale enterprises (SMEs) in Anambra State, Nigeria. SMEs are recognized as crucial drivers of economic development, contributing significantly to GDP, employment, innovation, and socioeconomic advancement. However, despite their potential, SMEs in Anambra face numerous tax policy and regulatory issues that hinder their performance. The study highlights key issues faced by SMEs in Anambra and these constraints which increase operating costs, impede innovation, discourage external investment, and hinder SME development. The study applied qualitative research approach and descriptive research design was specifically used to gain an in-depth understanding of the issues faced by SMEs and the impact of policies on their performance. Convenient sampling techniques were employed in selecting participants for the interviews. All the interview sessions were recorded and later transcribed for analysis. The findings revealed that the multitude of taxes imposed by different agencies significantly increased business costs. Inadequate electricity infrastructure also pushed up overheads while hindering productivity. and recommend among others a streamlining taxation by eliminating multiple levies and enhancing transparency in tax administration.