Effects of multiple taxation on business survival in Nigeria

TWO-THIRD PART

2.1. REVIEW OF CONNECTED WORKS

 

Effects of multiple taxation on business survival in nigeria is one of the most important fiscal strategies that a government, such as Nigeria’s, can employ to create economic stability and fund capital spending. The government levies various taxes on an individual’s income, wealth, or gain, as well as on a family’s and a business’s income, wealth, or gain, for the purpose of or for the benefit of the general public.

 

From the perspective of the student researcher, a tax is a financial charge or other levy imposed by a state on a tax payer, who could be an individual or a legal business, and failure to pay is penalized by law. As a result, taxation cannot be considered a voluntary contribution or donation, but rather an obligation.

In order to increase income and improve Nigeria’s economic development, the Nigerian government has subjected numerous businesses to multiple taxes, which they are required to pay regardless of the sector in which they operate, or face the wrath of the law. Multiple taxes has been recognized as the bane of private sector business growth in Nigeria, according to a poll conducted by the Manufacturers Association of Nigeria (MAN1) and the Centre for International Private Enterprise (ICIPE) (Anyamvu, 2012).

The survey reaffirmed the negative effects of multiple taxing in the pilot state across the three tiers of government and established the relationship between multiple taxations in the pilot state across the three tiers of government.

According to the findings of the survey, double taxes can lead to divestiture.

Furthermore, it was discovered that the majority of businesses in Nigeria now regard the tax climate as unfriendly and deterrent to business, emphasizing that it causes both the government and private firms to lose man hours.

According to Osagie (2012), Nigeria’s tax environment, particularly its multiple taxation policies, raises the cost of conducting business in the country. Indeed, some businesses, particularly manufacturing firms, have ceased operations, while others have shifted their plants to other West African countries that are seen as more investment-friendly. This project explores the consequences of various taxation on business survival in Nigeria against this backdrop.

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