ANALYSIS OF FACTORS INFLUENCING AWARENESS OF TAX POLICY AMONG SME’s TAX PAYERS IN YOLA NORTH, ADAMAWA STATE
Nurudeen Babagari Baraya , Suleiman Purokayo Gambiyo ,Adetoun Nafeesat Adeola and Sajo Sani Alhaji
Volume 4 Issue 1
Abstract
The study examined the factors influencing awareness of tax policy among small and medium-sized enterprises (SMEs) in Yola North Local Government Area, Adamawa State, Nigeria. Multistage sampling method was employed, selecting 6 out of 11 wards based on commercial and economic tax-paying activities. The sample size of 318.86 respondents was determined using the Taro Yamane Formula. The logistic regression analysis revealed significant predictors of tax compliance such as income level and business size. Challenges such as high tax rates and lack of transparency emerge as prominent concerns in Yola North, Adamawa State. These findings have implications for designing targeted strategies to promote voluntary compliance and enhance tax revenue generation. According to recent global statistics, SMEs contribute significantly to tax revenues, with an estimated 50-60% of total tax revenues coming from SMEs in many countries. Additionally, studies suggest that effective communication and awareness programs can increase tax compliance among SMEs by up to 20%. Keywords: Tax Compliance, Tax revenue, SME’s and Tax system
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