1Amewuda Abraham | 2David Ackah (PhD)
1St. Johns Grammar School | 2Center for Excellent Training & Consultancy
Email: dashdollar2004@yahoo.com | drackah@ipmp.edu.gh
Abstract
Small and medium enterprises play an important role in transitional economies due to some of their special features: minimum bureaucracy, flexibility, quick adaptation; and special functions: creating of additional working places, active promotion of innovations, creating a competitive environment. Different policy incentives are able to influence the development and growth of the SME sector. However, creating proper taxation policies can be of crucial factors in this process. Based on the main objective of the study, the researcher specifically examined the relationship between tax and SME sustainability in the Ga-West Municipal Assembly. A quantitative analysis was carried out on fifty (50) responses gathered. The empirical evidence of the study indicated that the objectives of the study were achieved. Empirically, the study examined the effect of tax on the sustainability of SMEs in Ga-West Municipal Assembly. It became evident that the development and operation of SMEs have economic impact on the national economic development. The study established that there is a relationship between taxation and SMEs survival. Also results of the study indicated that tax has a negative effect on the sustainability of SMEs in Ghana.
Keywords: Tax Theory, Public Financial Administration, Economic management, Sustainability of SMEs, Development Economics
