Background of the Study
Small-scale farmers are the backbone of rural economies, particularly in local government areas like Mayo-Belwa LGA, where agriculture remains the dominant economic activity. However, small-scale farmers often face significant challenges in complying with tax regulations, which can affect their economic well-being and productivity. This study examines how taxation impacts small-scale farmers in Mayo-Belwa LGA, focusing on the financial burden, challenges, and opportunities taxation presents to these farmers.
By analyzing the impact of taxation on small-scale farmers, this study will contribute to understanding how tax policies can be tailored to support the agricultural sector while maintaining revenue generation for the local government.
Statement of the Problem
Small-scale farmers in Mayo-Belwa LGA often struggle with the financial implications of taxation, which may hinder their productivity and income generation. There is a need to assess the impact of taxation on these farmers and identify ways to reduce the negative effects of taxes on their livelihoods.
Aim and Objectives of the Study
Aim: To analyze the impact of taxation on small-scale farmers in Mayo-Belwa LGA.
Objectives:
To assess how taxation affects the financial stability of small-scale farmers in Mayo-Belwa LGA.
To examine the challenges faced by small-scale farmers in complying with tax regulations.
To recommend tax policies that could better support small-scale farmers in Mayo-Belwa LGA.
Research Questions
How does taxation affect the financial stability of small-scale farmers in Mayo-Belwa LGA?
What challenges do small-scale farmers face in complying with tax regulations?
What tax policies can be introduced to support small-scale farmers in Mayo-Belwa LGA?
Research Hypothesis
H₀: Taxation does not significantly affect the financial stability of small-scale farmers in Mayo-Belwa LGA.
H₀: Small-scale farmers do not face significant challenges in complying with tax regulations.
H₀: Introducing supportive tax policies will not significantly improve the financial situation of small-scale farmers.
Significance of the Study
This study will provide valuable insights into how taxation impacts small-scale farmers in Mayo-Belwa LGA and offer policy recommendations that can enhance their financial stability and productivity.
Scope and Limitation of the Study
The study focuses on small-scale farmers in Mayo-Belwa LGA and examines the financial impact of taxation on them. Limitations include difficulties in collecting comprehensive data on all farmers and the potential bias in self-reported information from farmers.
Definition of Terms
Small-Scale Farmers: Farmers with limited land and resources who engage in subsistence or semi-commercial farming.
Taxation: The process of levying taxes on individuals and businesses to fund government operations.
Agricultural Sector: The part of the economy that deals with the cultivation of crops and raising of livestock.
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