The impact of tax policies on viability of small and medium-sized enterprises (SMEs): A survey of Ruwa Town.
- Author
- Dzingirayi, Solomon
- Title
-
The impact of tax policies on viability of small and medium-sized enterprises (SMEs): A survey of Ruwa Town.
- Abstract
- The present study investigated the impact of tax policies on Small and Medium-sized Enterprises (SMEs) in Ruwa Town, Zimbabwe, from 2018 to 2023. It focused on the compliance burden and tax-related barriers hindering SME viability. A mixed-methods approach was employed, surveying 50 SMEs and conducting interviews with tax-registered businesses. Summative content analysis and SPSS software were used to analyse the primary data, which was gathered through questionnaires and interviews. The findings revealed that high tax rates and complicated rules severely restrict SME development and expansion. Economic, social, and demographic factors influence tax compliance among SMEs, while frequent tax policy changes, compliance costs, high tax rates, and complex tax laws pose significant barriers to SME viability. Regression analysis confirmed that tax compliance costs, policy uncertainty, regulatory complexity, and audit frequency collectively impact SME viability. The study recommends simplifying tax rules and regulations to diminish acquiescence charges and complexity, making it easier for SMEs to navigate the tax system. Additionally, it suggests that the Zimbabwe Revenue Authority (ZIMRA) reduce tax rates to increase SME profit margins and encourage investment, promoting growth and development.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- Tax policies
- Compliance burden
- Supervisor
- N/A
- Item sets
- Department of Accountancy