The Effect Of Taxation On Manufacturing Firms (a Case Study Of Ikeji Plastic Company Limited Onitsha), Abstract
From Original Conception-
Taxation May Be Regarded As An Assessment Imposed By The Government To Meet ...
From original conception,
taxation may be regarded as an assessment imposed by the government to meet the
express of government structures.
The aim of this research is to
find out how taxation effect, the manufacturing firms with reference to Ikeji
plastic company limited Onitsha. The research seeks to find out if these effect
are positively oriented or negatively oriented.
The study is carried out as
step towards giving answer to these problems. In attempt to solve the research
questions, questionnaires were used to guide the study the collected data and
stated questions were later analyzed and tested using arithmetic percentages.
The influences and deducation drawn from these analyzes and tested reveals
It was discovered that the
effect of taxation on the manufacturing firms was both positive and negative.
In as much as those interviewed held the view that the tax their company pay is
too much, they also agree the they enjoy some benefit from paying such taxes.
From the findings, the
researcher therefore recommends that government should find a way of checking
and balancing tax payment so as not to discourage tax payment on the part of
TABLE OF CONTENT
Statement of problem and purpose of the study
Rational of the study
Significance of the study
Background of the study
Definition of terms
Review of related literature
What is tax
Origin of taxation
Legal development of income tax of companies (source)
Forms of taxes
Objective of taxation
Principles of taxation (source)
The problems of manufacturing firms in Nigeria (sources)
Sources of data
Location of data
Method of data collection
Method of data analysis
Limitation of the study
Data presentation, data analysis
and discussion of results
Discussion of result
Summary, conclusion and
Areas of further research
OF THE PROBLEMS AND PURPOSE OF THE STUDY
It is really a statement of
fact that a manufacturing industries fail to reach their objective as a result
of their inability to meet up with their tax payment.
The study was set up to find the problems that tax have created on
manufacturing industries. The researcher also intends to find out the effects
of tax on manufacturing companies especially on profit.
The effects of tax on the firms
line of business. The study aims at helping manufacturing industries to realize
how important taxation is the purpose of the study is to investigate among
other things the followings;
v The effect of indirect tax on manufacturing
industries in their ability to procure equipments and also raw materials.
v The effort government has done to ensure
maximum efficiency in production and no dissatisfaction on the part of the
manufacturing industries with respect to taxes.
OF THE STUDY
The rational of the study is,
to identify and explain how effort government has done to ensure maximum
efficiency to words in production and no dissatisfaction on the part of the
manufacturing industries with respect to tax.
Every government with good intention normally focus on hoe to carry out an
effective fiscal policy, that is a process to check public expenditure and
shaping of the tax system in order to centre upon.
v Maintenance of a growing high employment in
the case of the manufacturing sector, the nature of the effect of the taxation
policy will depend on the objective the government hopes to achieve. It might
be on the manufacturing industries advantage or not. An example is where the
government design to protect infant industries by granting tax holidays to
OF THE STUDY
The significance of this study
“the effect of taxation on manufacturing firms” a case study of Ikeji pastic
company LTD is that it helps to educate manufacturing firms on the importance
of taxation with regards to the growth of the economy as it effects the
It will also highlights on the performance of manufacturing industries on the
result they create in the economy. The study will also stress a way to make the
manufacturing industries take appropriate steps to improve their business and
creating satisfaction at the same time.
The study will also be of help or importance to the following peoples.
v The business community for the purpose of the
companies’ income taxes.
v Local and small manufacturing industries
v The government and those responsible for
v Student and other researchers who wish to
expand this study.
OF THE STUDY
For many years even before the
colonial era, taxation has been in existence in Nigeria. the local communities
then usually tax themselves to promote some of their community project and
defense against any attack. It has been a general belief that civilized
economic have been able to develop because of taxation.
Taxation is one of the fiscal
policies instrument. Here in Nigeria, we have all withnessed different
administration and government, the fiscal policy seems to always change,
thereby causing flotation in the system.
Taxation is generally seen as a
compulsory levy by government through its agencies generate, income,
consumption and capital of its subjects.
These levies are made up of
personal income, company’s profit and os on. It can be noted that taxation is
very vital for the economic development of a country. Its fluctuation will
thereby cause an effect (whether favourable or unfavourable) in economy.
Every government with good
intentions normally focus an hoe to carry out an effective fiscal policies,
that is a process to check public expenditure and shaping of the tax system in
order to centre upon.
v Maintenance of a growing high employment
v Increase in business cycle
v Reduction of inflation
v Avoidance of excess demand.
Any taxation policy that hopes
to achieve these above named objectives usually have a general effect in the
economy i.e. manufacturing and the consuming sector. Taxes are classified in to
two categories: direct and indirect taxes.
Direct taxes: this is tax
levied directly on individual and companies. Direct tax is made up of personal
income tax, company tax and capital gain tax.
Indirect taxes: this is a tax
on goods and services example are import and export duties, excise duties.
Infant industry: a newly
Tax system: this is a way which
government collects tax and utilization of the tax
Taxation: the compulsory
contribution to the support of the government levied on persons, income,
property, commodity transaction etc. at fixed rates, mostly proportional to the
amount on which the contribution is levied.
Manufacturing firms: an
independent administered unit of the manufacturing industry.
TERMS AND CONDITIONS APPLY
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