Challenges of Taxing Informal Businesses in Lafia LGA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Taxation is a critical tool for generating government revenue, but taxing informal businesses remains a persistent challenge, especially in developing regions like Lafia LGA. The informal sector comprises small-scale businesses, street vendors, artisans, and other unregulated economic activities. While these businesses contribute significantly to local economies, their tax contributions are often minimal due to challenges like lack of proper registration, poor record-keeping, and resistance to taxation.
In Lafia LGA, the informal sector is expanding, yet a substantial portion of its revenue potential remains untapped. These challenges hinder the government’s ability to fund public services and infrastructure. Identifying and addressing the issues associated with taxing informal businesses is essential for improving revenue collection in Lafia LGA.
Statement of the Problem
Taxing informal businesses in Lafia LGA is fraught with challenges such as lack of accurate data, low taxpayer education, and resistance from business operators. These issues lead to revenue losses and inequality in the tax system. This study seeks to explore the challenges of taxing informal businesses in Lafia LGA and propose actionable solutions.
Aim and Objectives of the Study
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To examine the challenges of taxing informal businesses in Lafia LGA.
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To analyze the factors contributing to non-compliance among informal businesses in Lafia LGA.
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To recommend strategies for improving tax compliance among informal businesses in Lafia LGA.
Research Questions
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What are the challenges of taxing informal businesses in Lafia LGA?
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What factors contribute to non-compliance among informal businesses in Lafia LGA?
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What strategies can improve tax compliance among informal businesses in Lafia LGA?
Research Hypotheses
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Taxing informal businesses in Lafia LGA faces significant challenges.
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Factors contributing to non-compliance do not significantly impact tax collection.
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Proposed strategies do not significantly improve compliance among informal businesses.
Significance of the Study
The study sheds light on the challenges of taxing the informal sector in Lafia LGA, providing insights to policymakers and tax administrators on how to enhance tax collection and compliance.
Scope and Limitation of the Study
The study focuses on informal businesses in Lafia LGA, examining their tax compliance and challenges. Limitations include the unavailability of comprehensive data and the informal nature of business operations.
Definition of Terms
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Informal Businesses: Enterprises operating outside formal regulations.
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Tax Compliance: Adherence to tax laws and regulations.
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Revenue Loss: The gap between potential and actual tax collections.
