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...

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Main Authors: Juan-Pierré BRUWER, Mariaan LOMBARD, Yolandé SMIT, Ankit KATRODIA
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/
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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.
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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/
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