The Effect of State Tax Policy on Small and Medium Businesses in Kogi State

Abstract

This study investigates the impact of state tax policy on small and medium businesses in Kogi State, Nigeria. The research employed a mixed-method approach, combining primary data obtained through survey questionnaires and personal observations of the researcher, with secondary data from relevant literature. The survey questionnaires were distributed to 450 business owners from six different sectors, and the data collected were analyzed using descriptive statistics and regression analysis. The findings reveal that a significant proportion of small and medium business owners in Kogi State comply with tax regulations, but they perceive the tax rates as high and experience double taxation. The study also shows that the tax policy of the state negatively affects business growth and development, and that there is a need for more government intervention and support for small and medium businesses in the state. Based on these findings, the study recommends that the government of Kogi State should review the tax policy to make it more business-friendly and reduce the burden of double taxation on small and medium businesses. The government should also provide more incentives and support for these businesses, including tax incentives, access to finance, and training and development programs.