The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise
In South Africa, Small, Medium and Micro Enterprises (SMMEs) are often described as the driving forces of the national economy, mainly due to the socio economic value they add. Unfortunately, prior research suggests that South African SMMEs are adversely influenced by an array of economic factors, o...
Main Authors: | , , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Sprint Investify
2019-05-01
|
Series: | Expert Journal of Business and Management |
Subjects: | |
Online Access: | http://business.expertjournals.com/23446781-708/ |
_version_ | 1818283571083739136 |
---|---|
author | Juan-Pierré BRUWER Mariaan LOMBARD Yolandé SMIT Ankit KATRODIA |
author_facet | Juan-Pierré BRUWER Mariaan LOMBARD Yolandé SMIT Ankit KATRODIA |
author_sort | Juan-Pierré BRUWER |
collection | DOAJ |
description | In South Africa, Small, Medium and Micro Enterprises (SMMEs) are often described as the driving forces of the national economy, mainly due to the socio economic value they add. Unfortunately, prior research suggests that South African SMMEs are adversely influenced by an array of economic factors, one of which is taxation. One form of taxation, which influences an array of South African SMMEs, is that of excise taxation; as levied on specific products that are considered detrimental to the social- and/or environmental well-being of South African citizens. When taking into account that excise taxation has increased year-on-year for the past 20 years, the perception was formulated that South African tobacco-and-alcohol-selling SMMEs that are subject to excise taxation, experience weak financial sustainability. As such, this study placed emphasis on the influence excise taxation levied on products sold on the financial sustainability of tobacco-and-alcohol-selling South African SMMEs. This study was exploratory and empirical in nature and fell within the positivistic research paradigm. A total of 50 members of management of South African tobacco-and-alcohol-selling SMMEs were targeted, all of whom had to adhere to strict delineation criteria. Stemming from the results, it was found that with the most recent increase in excise taxation, less alcohol products and tobacco products were sold by these business entities, resulting in drastic reductions in profitability levels and liquidity levels, negatively influencing their financial sustainability. |
first_indexed | 2024-12-13T00:39:01Z |
format | Article |
id | doaj.art-9d69f6e0446b4733a3bc8419278b4363 |
institution | Directory Open Access Journal |
issn | 2344-6781 |
language | English |
last_indexed | 2024-12-13T00:39:01Z |
publishDate | 2019-05-01 |
publisher | Sprint Investify |
record_format | Article |
series | Expert Journal of Business and Management |
spelling | doaj.art-9d69f6e0446b4733a3bc8419278b43632022-12-22T00:05:09ZengSprint InvestifyExpert Journal of Business and Management2344-67812019-05-0171100106The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro EnterpriseJuan-Pierré BRUWER0Mariaan LOMBARD1Yolandé SMIT2Ankit KATRODIA3Graduate Center of Management, Cape Peninsula University of Technology, Cape Town, South AfricaCape Peninsula University of Technology, South AfricaHigher College of Technology Abu Dhabi Women’s Campus, United Arab EmiratesUniversity of KwaZulu Natal, South AfricaIn South Africa, Small, Medium and Micro Enterprises (SMMEs) are often described as the driving forces of the national economy, mainly due to the socio economic value they add. Unfortunately, prior research suggests that South African SMMEs are adversely influenced by an array of economic factors, one of which is taxation. One form of taxation, which influences an array of South African SMMEs, is that of excise taxation; as levied on specific products that are considered detrimental to the social- and/or environmental well-being of South African citizens. When taking into account that excise taxation has increased year-on-year for the past 20 years, the perception was formulated that South African tobacco-and-alcohol-selling SMMEs that are subject to excise taxation, experience weak financial sustainability. As such, this study placed emphasis on the influence excise taxation levied on products sold on the financial sustainability of tobacco-and-alcohol-selling South African SMMEs. This study was exploratory and empirical in nature and fell within the positivistic research paradigm. A total of 50 members of management of South African tobacco-and-alcohol-selling SMMEs were targeted, all of whom had to adhere to strict delineation criteria. Stemming from the results, it was found that with the most recent increase in excise taxation, less alcohol products and tobacco products were sold by these business entities, resulting in drastic reductions in profitability levels and liquidity levels, negatively influencing their financial sustainability.http://business.expertjournals.com/23446781-708/Excise taxationretailfinancial sustainabilitySMMESouth Africa |
spellingShingle | Juan-Pierré BRUWER Mariaan LOMBARD Yolandé SMIT Ankit KATRODIA The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise Expert Journal of Business and Management Excise taxation retail financial sustainability SMME South Africa |
title | The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise |
title_full | The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise |
title_fullStr | The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise |
title_full_unstemmed | The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise |
title_short | The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise |
title_sort | influence of excise taxation levied on product sales on the financial sustainability of south african tobacco and alcohol selling small medium and micro enterprise |
topic | Excise taxation retail financial sustainability SMME South Africa |
url | http://business.expertjournals.com/23446781-708/ |
work_keys_str_mv | AT juanpierrebruwer theinfluenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT mariaanlombard theinfluenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT yolandesmit theinfluenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT ankitkatrodia theinfluenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT juanpierrebruwer influenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT mariaanlombard influenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT yolandesmit influenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise AT ankitkatrodia influenceofexcisetaxationleviedonproductsalesonthefinancialsustainabilityofsouthafricantobaccoandalcoholsellingsmallmediumandmicroenterprise |