EFFECT OF IMPOSITION OF TAX ON MICRO BUSINESS IN JOS NORTH OF PLATEAU STATE

Abstract

This research studied the effect of imposition of tax on micro business in Jos north of Plateau State. Specifically, the clear nature of this study design was descriptive survey. The researcher opted for because of describing nature and the state of affairs as it set to archived. The methodology of this study included a population was 1,500 micro businesses, critically owned by individuals. The age bracket of the owners of these micro businesses are 30 years and above. The whole population was used. The method adopted by the researcher for the selection of the micro businesses was by street by street visitations, watching, and counting customers that entered these micro businesses within five weeks.  The source of data used for this study was primary. The instrument used for the data collection used was a self-administered questionnaire that was made up of both open-ended and close-ended questions. The instrument was validated by three professors in the faculty of management sciences making available to each all the questionnaires. The method of data analysis was by Chi-square statistical tool employed to test the hypothesis to see deviations of the actual observations (observed frequency) from the expected that led to the acceptance or rejection of the null hypothesis. The study found that micro businesses are negatively affected with the imposed taxes by the government of Jos State, meaning it negatively affected their businesses in Jos North. In conclusion, the rate of amount of tax by the government clearly hindered the activities of micro business in Jos North. However, the government of the Plateau State had lots of revenue to gain from micro businesses. Recommended among others was that; micro businesses in Jos North should be encouraged by way of continuous dialogues to pay affordable taxes on the nature of business by business basis, providing improved business environments.  There should be an atmosphere for tax imposition negotiations with micro business owners for better understanding.