By Chantelle Muzanenhamo
Beitbridge-Small and Medium Enterprises (SMEs) in Beitbridge have expressed their discontent with the proposed presumptive tax and have urged the Government to reconsider its decision. The tax is part of the Finance (2024) Bill [H. B. 8, 2024].
Finance Minister Professor Mthuli Ncube’s proposal initially targeted informal traders, including hairdressers, with a presumptive tax of US$30 per chair per month. However, following deliberations in Parliament, the proposed tax was reduced to US$5 per chair.
Despite this revision, many (SMEs) argue that even the reduced tax is unmanageable for their operations as they are already struggling to keep their small businesses afloat.
Sarah Moyo, a 35-year-old hairdresser who operates in Beitbridge, expressed her frustration.
“Even at US$5, this tax is too much for us,” she lamented, this tax would mean I have to raise my prices, but my customers can’t afford it.”
Vendors are particularly concerned about the gendered implications of the tax, as many small enterprises in Beitbridge are run by women.
Ndlovu, a 28-year-old vendor selling handmade jewellery, echoed Moyo’s sentiments.
“Most of us are women trying to provide for our families. This tax would hit us the hardest. We need support, not additional burdens.”
Local resident and barber Emmanuel Chikanda added his voice to the outcry, stating, “The government should focus on supporting us instead of taxing us, it’s not fair.”
The community’s discontent extends beyond just hairdressers and vendors. Ruth Dube, a local market vendor selling fruits and vegetables, emphasized the need for fair competition.
“If they really want to tax us, they should look at the bigger picture. We are already struggling in this economy. Taxing us will force us to raise prices thus driving customers away.
The voices of Beitbridge’s vendors highlight the urgent need for a more equitable approach to taxation that considers the realities of small business owners. Their plea and hope is for Government to listen to their pleas for a fairer tax regime.