The Effects of Electronic Taxes on Small and Medium-Sized Enterprises’ Access to Financial Services

S. N. Dorhetso (), K. Amofa-Sarpong and E. Osafoh
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S. N. Dorhetso: Accra Institute of Technology
K. Amofa-Sarpong: Accra Institute of Technology
E. Osafoh: Accra Institute of Technology

A chapter in Sustainable Education and Development – Sustainable Industrialization and Innovation, 2023, pp 293-302 from Springer

Abstract: Abstract Purpose: The purpose of this paper is to estimate the effects of electronic transaction taxes on small and medium-sized enterprises (SMEs) access to financial services. Design/Methodology/Approach: This quantitative study used cluster sampling to collect primary data via copies of a 5-point Likert scale questionnaire. Correlation analysis was initially used to measure the strength and direction of association that exists between the variables. A linear regression was then run to predict SMEs access to financial services from electronic taxes. Findings: The findings of this paper revealed that there was a weak, negative correlation between electronic taxes and SMEs access to financial services, which was statistically significant. Also, the results of the linear regression analysis indicated that electronic transaction taxes statistically significantly predicted SMEs access to mobile financial services. Implications/Research Limitation: It is envisaged that the findings of this study would significantly contribute to literature on the general effects of taxes, especially the effects of electronic transaction taxes on SMEs in developing economies, and increase their access to financial services, including affordable credit, and their integration into value chains and markets as recommended in the third section of the ninth sustainable development goal (SDG 9.3). However, the study is limited by its precincts as the survey was done only in rural and urban suburbs of the foremost city. The opinions of the respondents, which may be characterised with unfair judgment and uncertainty, also posed an acute limitation to the study. Practical Implication: Practically, the outcome of the research would provide guidance for policy makers on optimal taxation that would prevent a deadweight loss, and promote SMEs access to financial services. Originality/Value: This distinct study investigated the effects of electronic transaction taxes on SMEs access to financial services and corroborates a critical research area that is currently understudied.

Keywords: Deadweight loss; Electronic taxes; Financial services; SMEs; Taxation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-25998-2_22

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DOI: 10.1007/978-3-031-25998-2_22

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