The g e n e r a l purpose of the study was to evaluate the impact of taxes on t h e performance of small and
medium business enterprises in Kansanga and the specific objectives were to assess the performance of small-scale
business enterprises in Kans anga , to find out if taxpayers are aware of all their tax obligations and policies and
to find out problems affecting taxpayers and their businesses in Kansanga. The study revealed that taxes mainly
affects the performance of Small and Medium Enterprises through lost sales during the closure of the business
premises by URA, the loss of machinery and equipment due to delay in remitting the tax and the loss of capital due
to the fines imposed by URA onto SMEs that default on their tax obligation. Overall business performance was
fair as most businesses could duly cover up their expenses, had enough stock, awareness of taxpayers was poor and
a number of problems were encountered. It can be concluded that taxes are major limitations to the growth and
expansion of SMEs in Kansanga. This is because very little and sometimes nothing is left after covering expenses
and taxes to allow the expansion and growth of the existing SMEs. The findings further revealed that tax officials
are inefficient, the mode of tax collection and assessment was unfair, taxes levied are unfriendly and also most of
the respondents revealed they do not get assistance from the tax authorities. The study recommended that URA
should find a way of assessing the tax in that the SMEs should pay early in the financial year in order to give
enough time to the businesses to pay their dues rather than make an assessment and demand for payment
spontaneously, the tax authorities should introduce a scheme that allows taxpayers to pay the tax obligation in the
instalments over a given period of time as opposed to a lump sum at once and that URA should reach out and
educate the business community about the different tax rates and mode of payment