Presenting the 2008Â National BudgetÂ lastÂ month in HarareÂ Â theÂ MinisterÂ ofÂ Finance, SamuelÂ MumbegegwiÂ saidÂ with effectÂ fromÂ JanuaryÂ next year hair saloonsÂ will nowÂ be liableÂ Â to payÂ aÂ presumptiveÂ taxÂ as the government seeks to widen its revenueÂ base .
This meansÂ Â hair saloon operators willÂ Â be required to payÂ Â 10% of their gross income to government.
Â HoweverÂ speakingÂ Â to The ZimbabweanÂ thisÂ weekÂ hair saloonÂ Â owners in BulawayoÂ said thereÂ areÂ going to shutdownÂ Â theirÂ businessesÂ as payingÂ the presumptiveÂ tax isÂ goingÂ Â toÂ worsen theirÂ Â situationÂ asÂ the costs of operating a hair saloon has increased rapidly due to the country’s worsening economic situation.
Â WeÂ Â haveÂ no optionÂ butÂ to shutdown most of how our businessesÂ becauseÂ Â currentlyÂ most chemicals areÂ not available in theÂ Â country we have to importÂ them, so with this newÂ taxÂ band weÂ Â willÂ notÂ Â survive asÂ it is anotherÂ burden on us saidÂ LungileÂ Ncube who operatesÂ two hair saloons in the second capital.
Â WorkersÂ Â from one of the country’s leading hair saloons which has branchesÂ in the country’sÂ major citiesÂ Â Â saidÂ there were toldÂ by theirÂ bosses that from January nextÂ year theyÂ will be taxedÂ more in orderÂ for theÂ company to payÂ the presumptive tax to government and save itÂ from collapsing.
Presumptive tax affectsÂ hair saloons
By Pindai Dube
BULAWAYO---Hair SaloonÂ owners in BulawayoÂ have said thereÂ going to shutdown their businesses end of thisÂ monthÂ due toÂ theÂ newÂ taxÂ bandÂ Â whichÂ Â wasÂ introduced by governmentÂ lastÂ month.