EFFECT OF MULTIPLE TAXATION ON THE SURVIVAL OF SMES IN A SELECTED LOCAL GOVERNMENT AREA

Small and Medium Enterprises (SMEs) constitute the backbone of Nigeria's economy, employing over 80% of the workforce and contributing significantly to the nation's Gross Domestic Product. However, the survival and growth of these enterprises are increasingly threatened by the complex web of multiple taxation imposed by various tiers of government. This study examines the effect of multiple taxation on the survival of SMEs in Akure South Local Government Area, Ondo State, Nigeria. The research adopted a cross-sectional survey design, utilizing a structured questionnaire administered to 250 SME owners and operators selected through stratified random sampling from ten (10) major business clusters within the Local Government Area. Data were analyzed using descriptive statistics, correlation analysis, and regression analysis. The findings reveal that multiple taxation significantly impacts SME profitability, operational efficiency, and long-term survival. The study identifies that SMEs are subjected to numerous taxes and levies from federal, state, and local government authorities, including Company Income Tax, Value Added Tax, Personal Income Tax, business premises registration fees, environmental sanitation levies, market development levies, and various informal "unofficial" taxes. The burden of these multiple taxes forces many SMEs to operate below capacity, reduces their competitive advantage, and in many cases, leads to business failure. The study recommends the harmonization of tax collection mechanisms through a single-window tax administration system, the implementation of tax holidays for newly established SMEs, improved tax education, and the establishment of a robust monitoring framework to eliminate illegal and multiple taxation. These measures would enhance the survival and growth of SMEs, thereby contributing to economic development and job creation in Nigeria.

Keywords: Multiple Taxation, SMEs, Survival, Tax Harmonization, Local Government, Nigeria