Abstract:
The study was carried out with the purpose of examining the effect of Government taxes on the growth of hotel industry. The objectives for the study was; To determine the effect of corporate income tax on the growth of hotel industry, to determine the effect of withholding of tax on the growth of hotel industry and to determine the effect of value added tax on the growth of hotel industry. The researcher applied both qualitative and quantitative techniques in designing the research. A total of 40 respondents participated in the study and were selected using random sampling method. The data was collected using questionnaires and interviews and presented using tables, graphs and pie charts for easy analysis. The study looked at taxation as source of employment, source of government revenue, and they are the major source of foreign exchange earners in most part of the world .The industry is one of the most important sectors of a nation’s economy as they provide and create jobs, especially during times of holidays (summer break); they are a source of innovation and entrepreneurial spirit; they harness individual creative effort; and they create competition and are the seed bed for businesses of the future The study also highlighted negative and positive effect of government taxation on the growth of hotels and multiple taxation affects the growth of hotels. It relied on content analysis from the existing studies, and the outcome revealed that duplication of taxes is inimical and constitutes a threat to Hotels’ growth and survival. It was however recommended that since the growth of hotel industry plays a great role towards community livelihoods the government should lay strategies in order to improve on the sustainability and growth of the hotels and livelihoods of the local communities It was also recommended that the government develops different strategies such as formation of Uganda hotel owner association, formation of ministry of tourism and wildlife antiquity, exempting some hotels from paying taxes and looking for investors to invest in the sectors and others and promote the industry.
