Analysis of the Microeconomic Impact of Taxation on the Kanoeconomy

Student: Ummisalam Audu (Project, 2025)
Department of Economics
Bayero University, Kano, Kano State

Abstract

This study examines the microeconomic impact of taxation on the Kano economy, focusing on how various forms of taxes affect individual income, business performance, and overall economic activity within the state. The research explores the extent to which taxation influences production costs, consumer spending, investment decisions, and employment generation among small and medium enterprises (SMEs) and informal sector participants. Using both primary and secondary data, the study employs descriptive and inferential statistical tools to evaluate the relationship between tax policies and economic performance indicators. Findings reveal that while taxation contributes significantly to government revenue and infrastructural development, excessive or poorly structured taxes can impede business growth and reduce household purchasing power. The study concludes that a balanced and transparent tax system is essential for sustaining economic stability and promoting inclusive growth in Kano State. Recommendations are made for policy reforms that encourage compliance, fairness, and efficient utilization of tax revenue for developmental purposes.

Keywords
taxation economic taxes business performance state revenue growth examines microeconomic
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