Tax Incentives and Growth of SMEs in Rwanda: A Case Study of Small and Medium Enterprises in Nyarugenge District

Twesige, Daniel; Gasheja, Faustin; Barayendema, Jonas

doi:10.1007/978-981-15-5046-1_13

Cited by 4 publications

(4 citation statements)

References 12 publications

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“…The study recommends that there should be a friendly tax policy for all startup businesses preferably a tax holiday, or an introduction of a growth limit which can be said to be a level stable enough to sustain tax payment. Also Twesige and Gasheja (2019) in their study emphasize that there was a strong positive and significant relationship between tax incentives and the growth of SMEs. The study concluded that tax incentives are the key to the sustainable growth of SMEs.…”

Section: Fiscal Policy and Smes Growthmentioning

confidence: 90%

Impact of Fiscal Policies on Western Balkan SMEs’ Growth: Evidence from Kosovo

Jusufi

Gashi-Sadiku

2020

CEPAR

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This paper analyses the impact of fiscal policies on increasing the capacity of SMEs from the manufacturing sector in the Western Balkans, with particular emphasis on those in Kosovo. To achieve empirical results, the data obtained from the opinions of the 100 analysed SMEs were processed through logistic regression. The SPSS statistical software was also used for these statistics. Based on literature review and empirical results, it has been concluded that fiscal policies have an impact on Kosovo SMEs growth. Also in Kosovo and in other Western Balkan countries, fiscal policies and packages have been adopted to support SMEs and have had a significant effect on their activities. Despite the fact that under normal circumstances fiscal support for SMEs has been provided by the governments of these countries, in the near future there should be greater fiscal support to SMEs by means of fiscal incentives due to the devastating effects of the COVID 19 pandemic on each country’s economy.

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Section: Fiscal Policy and Smes Growthmentioning

confidence: 90%

Impact of Fiscal Policies on Western Balkan SMEs’ Growth: Evidence from Kosovo

Jusufi

Gashi-Sadiku

2020

CEPAR

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“…According to Twesige et al (2020), the tax holiday extended to business organizations excludes business investment from certain specified taxes, for a temporary period of time. This in turn serves as a useful fiscal tool to boost the company's growth, particularly in times of weak economic conditions and lean liquidity performance.…”

Section: Tax Incentives and Liquidity Performancementioning

confidence: 99%

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

2022

EJBM

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This study examined the effect of tax incentives on liquidity performance of quoted manufacturing firms in Nigeria Exchange Group. Expo-facto research design was adopted in the study. The population of the study comprised of 18 industrial goods firms listed in Nigeria Exchange Group from 2012 to 2021. The sample size of 10 firms was selected using purposive sampling technique. Data was obtained from secondary sources through the published financial statements of the companies. Data were analyzed through descriptive and inferential statistics. The result from the analysis of data revealed that tax savings had a significant and positive effect on liquidity performance of companies. The findings also from the study revealed that tax holyday has a negative and insignificant effect on companies' liquidity performance. The study concluded that liquidity performance of quoted manufacturing firms improves at the instant of tax savings. It was therefore recommended that Nigerian government should provide adequate tax incentives for manufacturers in Nigeria in order to achieve the growth of infant manufacturing industries.

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“…A positive relationship between taxation and economic development has been alluded to (Twesige, Gasheja, and Barayendema, 2020), yet on the other hand, studies point to the negative relationship between payment of taxes and survival and growth of informal businesses (Evans, Hansford, Hasseldine, Lignier, Smulders, and Vaillancourt, 2014;Adebisi and Gbegi, 2013). Those that point to a favourable relationship argue that as SMEs take advantage of tax incentives, it reduces their tax liability and in the process frees funds for expansion and growth (Feyitimi et al, 2016;Twesige and Gasheja, 2019).…”

Section: The Impact Of Taxation On the Survival And Growth Of Small F...mentioning

confidence: 99%

Taxing the informal sector through presumptive taxes in Zimbabwe: An avenue for a broadened tax base, stifling of the informal sector activities or both

Mpofu¹

2021

J. Account. Taxation

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Domestic revenue generation occupies a central domain in most countries, leading to continuous mapping of strategies towards its enhancement. Taxation is a dependable and foreseeable avenue to generate revenue for governments to fulfil their key obligations of employment creation, economic growth and infrastructural development, poverty reduction and state security. Despite these plausible arguments, tax revenues are minimal and tax bases narrow in developing countries. Contemporary tax debates point out that informal sector represents a lucrative fountain of tax revenue for governments, yet opponents of taxing the sector suggest that taxation might cripple small firms. Zimbabwe introduced presumptive tax in 2005, further enforcing to expand the tax base by including the sector into the tax basket in 2011. Researchers have focused on tax evasion and non-tax compliance when studying this sector, this paper focuses on the stakeholders perceptions on the impact of informal sector taxation on revenue generation and growth. This study adopted a sequential exploratory mixed method approach, argued to be ideal for under-researched areas such as this one. Key findings were that the current one size fit all tax framework suffocates small firms. Governments have to strike a balance between revenue mobilisation and the sector's key economic contributions, without crippling informal firms.

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Tax Incentives and Growth of SMEs in Rwanda: A Case Study of Small and Medium Enterprises in Nyarugenge District

Cited by 4 publications

References 12 publications

Impact of Fiscal Policies on Western Balkan SMEs’ Growth: Evidence from Kosovo

Impact of Fiscal Policies on Western Balkan SMEs’ Growth: Evidence from Kosovo

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

Taxing the informal sector through presumptive taxes in Zimbabwe: An avenue for a broadened tax base, stifling of the informal sector activities or both

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