Multiple Tax Obligations And Business Survival Of Agro-Based Micro-Businesses In Anambra State

This study investigates the impact of multiple tax obligations on the business survival of agro-based micro-businesses in Anambra State, Nigeria, a region characterized by a vibrant agricultural sector yet challenged by complex tax compliance environments. The problem informing this study stems from the growing concern that excessive and diverse tax burdens may hinder the growth and sustainability of micro-enterprises vital to Nigeria’s economy. Specifically, the study examines how various tax-related factors namely, the number of different taxes paid, frequency of tax payments, types of taxes levied, tax compliance levels, and tax burden ratio affect the profitability of agro-based micro-businesses operating within Anambra State. The research employed a descriptive survey design, utilizing structured questionnaires administered to a sample of 349 agro-based micro-entrepreneurs selected through stratified random sampling. Data analysis involved both descriptive statistics - simple percentages, means, and standard deviations - to characterize the sample and variables, and inferential statistics through the Ordinary Least Squares (OLS) regression technique to ascertain the relationships between independent variables and business profitability. The model’s goodness-of-fit was evaluated, with the results indicating significant explanatory power. Findings reveal that the number of taxes paid (β = -0.215, p < 0.05), frequency of tax payments (β = -0.173, p < 0.05), and tax burden ratio (β = -0.312, p < 0.01) negatively influence business profitability, implying that higher tax obligations and burdens diminish micro-businesses’ capacity to sustain and expand. Conversely, the types of taxes and tax compliance levels showed positive but less statistically significant coefficients (β = 0.089 and 0.056 respectively, p > 0.05), suggesting nuanced effects that merit further investigation. The overall model indicates that multiple taxing obligations pose substantial challenges to agro-based micro-businesses, constraining their profitability and long-term survival. Based on these findings; it is recommended that policymakers streamline tax policies for small-scale agro-businesses, reduce the frequency and complexity of tax payments, and enhance tax compliance incentives. Establishing a simplified, transparent, and supportive tax framework could bolster micro-business resilience, stimulate economic growth, and contribute to poverty alleviation in Anambra State