The Effect of Tax Laws on Small Industries in Multan, Pakistan

The objective of this research paper is to analyze the impact of tax laws, government policies and tax structure on small and medium enterprises operating in Multan, Pakistan. The study is aimed at filling the research gap existing in the contemporary literature about the effects of tax laws on small industries. To measure this impact a questionnaire was structured under 5- points Liker scale and data was collected from 209 small entrepreneurs and mangers of small and medium firms. Different statistical techniques such as descriptive statistics, correlation matrix, regression analysis and normality test were used to analyze the data. The study found that different tax laws, government policies and tax structure have substantial impact on small and medium enterprises and it is one of the major factors of their failure in Pakistan.