Presumptive tax affects hair saloons

Presumptive tax affects  hair saloons

By Pindai Dube

BULAWAYO---Hair Saloon  owners in Bulawayo  have said there  going to shutdown their businesses end of this  month  due to  the  new  tax  band   which   was  introduced by government  last  month.


Presenting the 2008  National Budget  last  month in Harare   the  Minister  of  Finance, Samuel  Mumbegegwi  said  with effect  from  January  next year hair saloons  will now  be liable   to pay  a  presumptive  tax  as the government seeks to widen its revenue  base .
This means   hair saloon operators will   be required to pay   10% of their gross income to government.
 However  speaking   to The Zimbabwean  this  week  hair saloon   owners in Bulawayo  said there  are  going to shutdown   their  businesses  as paying  the presumptive  tax is  going   to  worsen their   situation  as  the costs of operating a hair saloon has increased rapidly due to the country’s worsening economic situation.
 We   have  no option  but  to shutdown most of how our businesses  because   currently  most chemicals are  not available in the   country we have to import  them, so with this new  tax  band we   will  not   survive as  it is another  burden on us said  Lungile  Ncube who operates  two hair saloons in the second capital.
 Workers   from one of the country’s leading hair saloons which has branches  in the country’s  major cities    said  there were told  by their  bosses that from January next  year they  will be taxed  more in order  for the  company to pay  the presumptive tax to government and save it  from collapsing.
 

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