MULTIPLE TAXATION AND THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN BAYELSA STATE

This paper investigated the impact of multiple taxes and levies on SMEs in Yenagoa metropolis. A theoretical and empirical review was made of the issues of tax and other levies. The problems were identified to include among others, poor performances due to multiple taxes and levies; abrupt closure of shops to avoid tax officials etc. This paper therefore sought to establish the existence of multiple taxes, in Yenagoa metropolis and to determine if they are of concerns to business survival. A descriptive statistic was employed using frequency and percentages to analyze the responses from the sampled 392 SMEs, the first and the second research questions each had a frequency of 390 and a percentage of 99.5% respectively for the questions which seek to confirm if multiple taxation exists in Bayelsa state and if they are of concerns to business survival respectively. The analysis of results shows that continuous multiple taxes are a great concern to business owners and it causes demotivation to entrepreneurial spirit, causes business failures, and high running cost. The work concludes that many businesses ware optimistic from start but the zeal and motivation died due to the activities of touts from the many outfits presenting themselves as tax collectors and agents to Government Ministries, Local Governments and relevant authorities. Finally, the work recommends that tax holiday should be given to newly established businesses at least for the first 3 years while existing businesses should be given a form of tax palliatives of about 50% reduction in their payable taxes and levies to ensure survival of SMES. For effective tax administration among its ministries, department and parastatals. The study further stresses the need for government to harmonize its tax system to avoid multiple taxation.