Govt to tax kombis, hairdressers

HARARE - Broke President Robert Mugabe’s government has introduced taxes for commuter operators – popularly known as kombis – and hairdressers, as part of desperate moves to raise funds.

According to last Friday’s gazette, authorities were given legal teeth to compel the “operators of hairdressing salons (to pay) $10 per chair per month” while “informal cross border traders (will pay) 10 per centum of the value for duty purposes of the commercial goods being imported...”

“Operators of omnibuses for the carriage of passengers with a seating capacity for 15 to 25 passengers will be required to pay $45 while those of between 25 and 36 passengers will part with $70 a month,” it added.

The new wave of taxes, with effect from January 1 2017, brought into being by the Finance Act 2017, will also affect driving school operators, with those for class four vehicles being required to pay $100 per month.

Class one and two vehicles operators will part with $130 a month.

This comes as the government has been struggling to service its burgeoning expenditure and failing to pay civil servants on time due to severely strained revenue streams.

“The presumptive tax chargeable in terms of Section 36C of the Taxes Act shall be in case of…operators of taxi cabs for the carriage of passengers for hire or reward having seating accommodation for not more than seven passengers, $25 per month for each such taxi cab so operated,” the gazette reads.

“Operators of goods vehicles having a carrying capacity of more than 10 tonnes but less than 20 tonnes, $200,” the gazette reads, adding that goods vehicles of 20 tonnes or more will be required to pay $500 per month.

Companies which are not resident in Zimbabwe but “carries on a business in Zimbabwe through a permanent establishment in Zimbabwe” will be liable to tax.

The meaning of permanent establishment, according to the gazette, is a company that has a fixed place of business in the country through which the business of the company is wholly or partly carried on.

Meanwhile, there was some relief for small scale miners whose presumptive tax is being calculated at zero percent of each dollar of the purchase price of metals.

Comments (6)

A government that has totally lost legitimate to govern.At the moment most transport operators are seeing red on account the ZRP traffic officers are milking them everyday including the taxi operators.The end result is that Kombis are going to hike their fares and driving schools will also raise their charges and all costs will be passed on to the final consumer who is the ordinary man in the street.As for hairdressers,most of them will be forced to do their work under trees.Thats the last straw in making people determined to vote such a insensitive government out of power come 2018.All they want is to fund raise money for their violent and murderous campaigns for the looming elections in 2018.

Janana wa Bikaz - 28 March 2017

Oooshem maningi sterek. Akakuudzai kuti kuvanhu ndookune mari ndiani. Road dzese angova mapurisa nema spike. Akati vanhu vanemari ndiani iyeye. Pane zvamurikutsvaga vanhu imimi majaira kunyararirwa tiriluzviona. Chasara muchati mwana wese wechikoro abhadhare $10 taxi.In fact $5 for ecd, $10 primary, $20 secondary and $100 universities. Motenga henyu maDiscovery nema V8 land cruisers nxaa

cde gabarinocheka - 28 March 2017

Iwe illegal government ye ZANUpf are you sure these gazetted taxes are okay!!! Self decampainers!!! People, go to vote full swing 2018. If not, you will die being sucked by vimpers!! Mr Fact

Wena Chatonga Uriblack Mamba - 28 March 2017

Janana i don't agree with you, those people you are saying will go to vote Zanupf out will actually not do that, the trend we see when a demo is called for is exactly the same that happens with voting, they will not vote and yet they want change. Unotonzwa munhu achiti ndiende kunoswera ndakamira queue yekupinza munhu pamari ini, ndichitadza ku hustler, ku hustler kuri kutaurwa ndokunogara pasi pemuti achiruka musoro

Ziggy Zigawo - 28 March 2017

The tax proposals are a clear testimony of the anti-people nature of our government.Can some tell this imbecilic government that a raft of tax measures will not grow the economy but ruin it. Factor in the numerous police milking roadblocks and this new madness and we expect people to remain in business, never.If the meat tax could not sustain then what makes the government think this will or is it that the government wants to then turn around and scrap this tax again to appear as though it is people sensitive when it's not? God have mercy on this country for having such lunatics as its leaders.

Ngazvirehwe Sezvazviri - 28 March 2017

Kombis are currently paying about $35-a-week to the police. We implore the government to eradicate the roadblock menace. Patrol cars and bikes will suffice.

Dlodlo - 29 March 2017

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