Background of the Study
Tax holidays, which provide businesses with temporary relief from paying taxes, are often used as incentives to stimulate investment and job creation. In Malumfashi LGA, tax holidays have been implemented with the goal of attracting new businesses and supporting existing ones. This study aims to assess the impact of these tax holidays on job creation in the LGA, focusing on the effectiveness of these policies in generating employment opportunities for local residents.
Statement of the Problem
While tax holidays are intended to encourage business growth and job creation, there is limited understanding of their actual impact on the local economy in Malumfashi LGA. This study will investigate whether tax holidays have successfully contributed to job creation and explore the challenges faced by businesses that benefit from such policies.
Aim and Objectives of the Study
Aim: To assess the impact of tax holidays on job creation in Malumfashi LGA.
Objectives:
To examine the number of jobs created by businesses benefiting from tax holidays in Malumfashi LGA.
To evaluate the sustainability of job creation resulting from tax holidays in Malumfashi LGA.
To assess the challenges businesses face in utilizing tax holidays to create jobs.
Research Questions
How many jobs have been created by businesses benefiting from tax holidays in Malumfashi LGA?
Are the jobs created through tax holidays sustainable in the long term?
What challenges do businesses face in using tax holidays to create jobs in Malumfashi LGA?
Research Hypothesis
H₀: Tax holidays do not significantly contribute to job creation in Malumfashi LGA.
H₀: Jobs created through tax holidays are not sustainable in the long term.
H₀: Businesses in Malumfashi LGA do not face significant challenges in utilizing tax holidays to create jobs.
Significance of the Study
This study will provide insights into the effectiveness of tax holidays as a tool for job creation in Malumfashi LGA. The findings will be valuable for policymakers in assessing the potential of tax incentives to promote employment and economic growth.
Scope and Limitation of the Study
The study will focus on the impact of tax holidays on job creation in Malumfashi LGA. Limitations include the difficulty in accessing data from businesses and potential biases in self-reported information about job creation.
Definition of Terms
Tax Holidays: A temporary period during which businesses are exempt from paying certain taxes, often used as an incentive for investment.
Job Creation: The process by which new employment opportunities are generated in an economy.
Sustainability of Jobs: The ability of jobs created to remain viable and enduring over time.
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