Please use this identifier to cite or link to this item:
DC FieldValueLanguage
dc.contributor.authorSalie, Maliekahen_US
dc.contributor.authorStrauss, Natalieen_US
dc.contributor.authorDavids, Mossinaen_US
dc.contributor.authorSmit, Yolandeen_US
dc.contributor.authorBoshoff, Suzanneen_US
dc.contributor.authorBruwer, Juan-Pierréen_US
dc.identifier.citationSalie, M., Strauss, N., Davids, M., Smit, Y., Boshoff, S. and Bruwer, J.P., 2014. The effects of sin tax on the profitability of SMME convenience stores in the Cape Metropole. Topclass Journal of Business Management and Innovation, 1(2): 8-20.en_US
dc.description.abstractSmall Micro Medium Enterprises (SMMEs) contribute significantly to the South African Gross Domestic Product (GDP) and play a critical role in job creation and poverty alleviation. Prior research shows that objectives relating to job creation and poverty alleviation are not successfully being met as approximately 75% of newly created South African SMMEs fail after operating for an average of 3 years – one of the worst failure rates in the world. This high failure rate is perceived to be attributed to a magnitude of economic factors e.g. shortage of skills, economic uncertainty, crime, legislation and taxation among others. Encapsulated within legislation and taxation is the burden of tax compliance and governmental regulation which diverts SMME leaders’ attention away from core business operations. In South Africa, sin tax (a mandatory form of excise taxation), is levied on products considered to be socially undesirable such as tobacco related products and plastic bags. At present time, the taxation levied on tobacco products is 45% per unit sold, while the taxation levied on plastic bags is 6 cents per plastic bag sold. The main objective of this study was to determine the effects of sin tax on SMME profitability. This research was exploratory in nature, and took the form of quantitative research. A total of 47 responses were obtained from SMME leaders of convenience SMME stores from where all data were analysed through means of descriptive statistics. Findings indicated that sin tax has a direct adverse effect on the profitability of convenience SMMEs stores within the Cape Metropoleen_US
dc.publisherTopclass Global Journalsen_US
dc.relation.ispartofTopclass Journal of Business Management and Innovationen_US
dc.subjectSin Taxen_US
dc.subjectexcise dutyen_US
dc.subjectSouth Africaen_US
dc.subjectconvenience storesen_US
dc.subjectCape Metropoleen_US
dc.titleThe effects of sin tax on the profitability of SMME convenience stores in the Cape Metropoleen_US
Appears in Collections:BUS - Journal Articles (not DHET subsidised)
Files in This Item:
File Description SizeFormat 
Salie_Maliekah_Strauss_Natalie_Davids_Mossina_Smit_Yolandé_Suzanne_Boshoff_Bruwer_Juan_Bus_2014.pdfArticle321.68 kBAdobe PDFView/Open
Show simple item record

Page view(s)

checked on Feb 9, 2021


checked on Feb 9, 2021

Google ScholarTM


This item is licensed under a Creative Commons License Creative Commons