Understanding the retail business owners' perception of social media tax in Uganda

Abstract

AbstractCurrently, the adoption and use of social media is widespread in various sectors, including retail businesses. However, new policies significantly affect the adoption of social media and its associated benefit. This research draws from attitude as a determining factor to understand the retail business owners' perception of social media tax in Uganda. Using qualitative methods, data were collected from 183 retail businesses in urban communities. The study established that social media is being used to promote businesses, with WhatsApp, Facebook, and Twitter as the most popular tools. Results further indicate that most retailers see social media platforms as a means of keeping them competitive and urging them to stay connected on these platforms. The study, however, demonstrates that the introduction of social media tax (SMT) changed the behavior of retailers resulting in the reduced use of social media as they thought it was expensive. Further research should seek to investigate (a) the effect of social media tax in financial terms and productivity in retail businesses; (b) the cost–benefit analysis for those paying social media tax; and (c) key factors that could further explain the behavior of retail business owners and the payment of social media tax.