Impacts of Taxation on Small and Medium Enterprises in Makeni City, Northern Province of Sierra Leone: A Case Study of Ten SME’s in Makeni City

Abstract

Small and Medium Enterprises are crucial to the Economic Development of any developing nation such as Sierra Leone, and as a result it is seen as a bridge or one of the major and significant drivers of an Economy to full industrialization. Taxation as it is known as the major source of revenue for Governments, and SME’s are major contributors towards Government revenue mobilization, but not much is known about the impacts of Taxation on Small and Medium Enterprises in Sierra Leone but with emphasis on SME’s in Makeni City.
Ten SME’s were selected as case studies for the purposes of this research, and they were purposively selected as samples for the research. According to the research, it was discovered that SME’s activities are hugely impacted by the many taxation regimes implemented on them, and that a little or know much knowledge is known about taxation policies by SME’s in Makeni City. Furthermore, the many taxes levied on SME’s affects their profits, and which also accounts for the closure and premature termination of Many SME’s in Makeni City, and which has also resulted to the economic depression of the Economy of Makeni City.
Moreover, it was recommended on the research that Government must ensure that they educate the owners of SME’s on the various taxation regimes applicable on Small and Medium Enterprises in Makeni City. Conclusively, Government must ensure that they reduce the tax burdens on SME’s so that they could enhance the profitability of Small and Medium Enterprises in Makeni City.