Value Added Tax and The Financial Viability of Supermarkets in Laikipia County

Joyce Wariara, Dr. Kennedy Kirima Nteere & Dr. Justus Maina.
School of Business and Economics, The Cooperative University of Kenya, Kenya
DOI – http://doi.org/10.37502/IJSMR.2024.71101

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Abstract

Purpose: Value added Tax imposes financial burdens on retail businesses such as supermarkets forcing some of these supermarkets to fail in complying with the tax regulations and some even shutting down. The study looked at the effect of value added tax on the financial viability of supermarkets in Laikipia county.

Methodology: The study adopted a descriptive research design. Questionnaires were used to collect data from the respondents. The data was analysed and presented in frequency tables. To analyse the relationship between financial viability of supermarkets and value added tax, correlation and regression analysis were used.

Findings: The study concluded that there exists a strong relationship between Value Added Tax and the financial viability of supermarkets in Laikipia County.

Keywords: Value Added Tax, Financial Viability, Taxation

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