THE EFFECT OF INVESTMENT CLIMATE ON SMALL AND MEDIUM SIZE ENTERPRISES' ATTITUDE TOWARDS TAX IN PLATEAU STATE NIGERIA

Abstract

The main objective of the study is to test association between investment climate and attitude towards tax by SMEs in Plateau State. The study used cross-sectional survey design. Using Krejcie and Morgan (1970) sample size determination table, the sample size for the current study is 265 for a population of 875. The data for the study were obtained through administration of questionnaire and was analyzed using multiple regressions. The results indicate that shortage of electric supply, insecurity, perceived corruption, access to finance and taxpayers' attitude towards tax are significantly and positively associated. However, multiple taxation was found to be insignificant in explaining SMEs negative attitude towards tax. It was recommended that government should put measures in place to address shortage of electric supply, insecurity, inadequate access to finance and corruption to improve internally generated revenue through tax.