Assessing The Effects Of Electronic Transfer Levy On The Economic Performance Of Small And Medium Enterprises (Smes) Within The Kumasi Metropolis

No Thumbnail Available
Abolga ,Esther
Journal Title
Journal ISSN
Volume Title
The study was on assessing the effects of electronic transfer levy on the economic performance of small and medium enterprises (SMEs) within the Kumasi Metropolis. Small and Medium-sized Enterprises (SMEs) serve as vital economic stimulators in developing and developed economies. However, several factors including high energy costs and taxing practices hamper these businesses growth and expansion. Essentially, taxation or taxing practices are those multiple payments obligations placed on SMEs by the state. This study assesses the effects of electronic transfer levy as an element of tax on the economic performance of Small and Medium Enterprises (SMEs) within the Kumasi Metropolis with specific focus on whether the new levy on Mobile Money Transfers has significant implications on SMEs profitability, investment decisions, and cash flows. The quantitative research approach was used, maximizing questionnaire as the research instrument. The sample size included the Accountants, Auditors, Secretary, Managers and CEOs of SMEs. Data was analyzed using the Statistical Product and Service Solutions (SPSS, 22.0). The findings showed that e-levy has negatively affected SMEs’ daily sales, cash flows and profits represented by 43.1% and 40.1% respectively. The study concluded e-levy has adverse effect on SMEs’ operations in Ashanti region and recommended that policy makers should exempt SMEs from the e-levy transactions these will eventually encourage growth and expansion of SMEs and the economy at large.