ABSTRACT

This study was carried to examine the effect of tax incentives on the profitability of small and

medium scale enterprise in A bia State. The specfIc objectives are to determine the effect of tax

incentives on the pro fitahflitv of small SCc. Ic enterrr,se in Abia State, to ascertain the relationship

between Iu,.t i,zcenilves aiicl I/ic per/brinaiice of small cimid medium scale enterprise, to delerininc

factors affecting fax incentives and the performance of small scale enterprise. The study was

conducted in ii bici Stale with reference to smcill and medium scale enterprise, A bia. Primnamy c/ala

obicumied from,, athninisiration q/ qiwslionnt lire i'as analyzed using descriptive statistic such

frequency/percentage,

and correlation coef/icien(. The resecircher imiake use of Random sampling

techniques were 10 select evemy member of the population each member stand an equal change

probcthility of being selected in the sample. Each member of the population were assigned a unique

i,iimnbc'r. Each mninber were place in a bowl or hat and mixed thoroughly. The researcher then pick

number tag /roin the hat. All the respondents bearing i/i.' number pick by researcher Jbrmn the

sample for the study. These were those thai the researcher .vsue questionnaire and grant interview

,vchethiled.oThe empirical result revealed thai. The findin1;v of this study revealed that multiple

taxation have no Jjct on the growth and performance of the small and medium scale enterprise.

It ii'as recommended that government should educate owners ofsmall and medium scale industries

on f/ic importance of tax education and the use of tax, this will help to prevent them from tax

avoidance.