Tax Concession and Investment Decisions of Small Scale Businesses in Calabar Free Trade Zone – Nigeria

This study sought to ascertain the influence of investment tax incentives on operations and overall performance of small business firms operating in Calabar Free Trade Zone. The purpose was to determine how policy makers, tax administrators, investors and other stakeholders in the State could meet the challenge when considering tax concessions and investment decisions amongst small scale businesses operating in Calabar Free Trade Zone. Data were collected using survey research techniques. The ordinary least square regression method was used in the estimation and validation of data in the study. The study revealed that investment tax incentives positively influenced the return on investment’s rate, economic growth rate and employment generation rate by firms who enjoy investment tax incentives. The study concluded that States granting investment tax incentives enjoy heavy flow of investments; rapid economic growth, and conducive investment climate which is a strong requirement for the flow of sustainable physical investment into the economy. Based on findings of the study, it was recommended that tax policies should be designed to eliminate double taxation; tax incentives should be effectively implemented while investment climate in the country should be made conducive through effective policy formulation, implementation and provision of adequate functional physical infrastructure.