The general belief that a complex tax policy puts enormous weight on Small and Medium Scale Enterprises (SMEs) and affects their growth level appeared to be a recent debate in Ekiti state and this constituted the motivation for this study. On this premise, this study was undertaken to examine tax policy, SMEs compliance perception and growth relationship in Ekiti state. The study adopted descriptive research design of a survey type and the population covered all the 1748 Small and Medium Scale Enterprises in Ekiti state out of which, 262 were purposively selected(sample size) as the study participants. However, the analysis carried out using descriptive statistics of frequency and percentage for the background information of the respondents and inferential statistics of Pearson Product Moment Correlation at 0.05 level of significance for the formulated hypotheses was based on 204 filled and returned questionnaires. It was discovered that there was a negative significant relationship between tax policy and tax compliance of SMEs in Ekiti state and that there was a negative significant relationship between tax policy and the growth of SMEs in Ekiti state. Thus, it was concluded that that tax policy can stimulate a decrease in the compliance level of SMEs in Ekiti state and that the growth of SMEs depends on the government regulations as they relate to tax policies. It is therefore recommended that the government should discontinue unfavourable tax policies. This might improve the performance and survival rate of SMEs in Ekiti state. Also the government should always checkmate the activities of tax officials to ensure that activities are being carried out in line with the stated rules and regulations.
