A SURVEY ON TAX INCENTIVE AS A CATALYST FOR PERFORMANCE OF BEVERAGE COMPANIES

ABSTRACT: The objective of this study was to examine the influence of tax incentives on the performance of beverage companies, focusing on selected beverage companies in Enugu State as a case study.  The research study utilised a survey-based descriptive research design. A total of 43 survey replies were deemed legitimate. The data collected was evaluated via a four-point Likert scale consisting of the following response options: strongly agree (SA), agree (A), strongly disagree (SD), and disagree (D). The specified hypotheses were tested using the Regression (Dubin Watson) statistical tool in SPSS version 23. The study's findings indicate that various tax incentives, such as Pioneer Companies Tax Incentives, Investment Tax Relief, Replacement of Obsolete Plant, Investment Allowance, Rural Investment Allowance, Tax Free Interest, Deductible Capital Allowance, Tax Free Dividend, and Small Business Rate, are accessible to manufacturing companies in Nigeria. These tax incentives play a role in promoting the establishment and growth of beverage manufacturing companies. Furthermore, the study suggests that tax incentives have influenced the investment strategies of beverage companies. Based on the findings and further analysis, it was determined that tax incentives have a favourable effect on the profitability, productivity, and growth of beverage companies. The study suggests the importance of reducing the variability in the allocation of tax incentives among beverage companies in order to enhance the survival prospects of a larger number of companies. It is recommended that the government should consider expanding certain tax incentives, such as capital allowances, excise tax incentives, and custom duty incentives, which have not yet fully manifested their impact on these companies, as compared to corporate income tax incentives. Additionally, there is a need for greater diversification in the incentives granted and a focus on ensuring their long-term sustainability. Policy makers should consider implementing strategic incentive plans or tailored incentive schemes that focus on specific industries. Additionally, they should explore the possibility of implementing strategic tax incentives that promote economic growth by expanding diverse sectors. These initiatives should align with the country's strategy for the year 2030. The strategic incentive strategies, when designed, implemented, and administered effectively, can effectively mitigate the risk of revenue loss.