The Impact of High Taxation on Small and Medium Scale Businesses in Anambra State

The study examined the impact of high taxes on the performance of small and medium scale businesses in Anambra state. Specifically, the study investigated the effect of high taxation challenges on small and medium scale business in Anambra state and how enormous taxation significantly influence small and medium scale businesses in Anambra state. Two research questions and hypotheses were formulated for the study in line with the objectives. The study made use of descriptive survey and the area of study was Anambra state. 21 selected small and medium enterprises in the 3 senatorial zones in Anambra state. Hence the total population of the study is 198650 and the sample size was 399 while 370 copies were used for the study. Research instruments were validated and reliable. Descriptive analysis was carried out on the research questions and hypotheses were tested using multiple regression analysis (MRA). The study revealed that high taxes have positive relationship with small and medium scale businesses in Anambra State. It was recommended that government should encourage more entrepreneurship activities in the state so as to bring about more economic growth in the state. Government should reduce the rate of taxation on small and medium scale businesses as high taxation can lead to fold up of small and medium scale businesses.