VALUE ADDED TAX AND SMALL SCALE BUSINESS GROWTH IN NIGERIA
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ABSTRACT
This study was carried out to examine value added tax and small scale business growth in Nigeria using 259 SMEs in Calabar, Cross Rivers State as case study. The study employed the survey descriptive research design. A total of 259 responses were validated from the survey. Data collected was analysed using four Likert scale of (SA), (A), (SD) and (D). The formulated hypotheses was tested using the Regression (Dubin Watson) statistical tool SPSS v.23. From the responses obtained and analysed, it was accepted that VAT does affect profitability and sustainability of SMEs in Cross Rivers State. The study recommend a proper look into the recent raise of VAT from 5% to 7.5%, as such will affect the profit margin of SMEs, and increase unemployment rate becasue most SMEs cushion the effect of VAT on their product and service competition, by downsizing the number of their staff.
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