Traders observe strike against new tax

Published August 2, 2015
Markets in Lahore and other cities across the country remained closed in conformity with the call for strike. ─ PPI
Markets in Lahore and other cities across the country remained closed in conformity with the call for strike. ─ PPI
A shutter-down strike being observed in Hyderabad. ─ PPI
A shutter-down strike being observed in Hyderabad. ─ PPI
The strike was also observed in Karachi. ─ PPI
The strike was also observed in Karachi. ─ PPI

LAHORE: An overwhelming majority of traders — retailers and wholesalers both — across the country kept their shutters down on Saturday in protest against the Nawaz Sharif government’s decision on extension of the scope of withholding tax (WHT) on banking transactions.

Despite differences among the traders’ organisations over the schedule, most markets in major cities and smaller towns across the country remained closed in conformity with the call for strike.

The withholding tax will apply to cash withdrawals as well as all transfers over Rs50,000 per day made through any financial instrument or account-to-account payments — and double its rate to 0.6 per cent for the non-filers.

The one-day strike call was given by a faction of the All Pakistan Anjuman-i-Tajiran (APAT) led by Naeem Mir. The rival Khalid Pervez group has called a countrywide strike for Wednesday.

The decision to extend the scope of the banking transaction tax was made in the budget for the present year with a view to punishing the non-filers and encouraging them to start filing their tax returns.

The tax is adjustable at the time of the filing of the tax returns.

Traders and businesses operating outside the formal, documented economy have been up in the arms against the extended scope of the tax ever since the government has announced its budget.

Earlier, the Naeem Mir group had struck a deal with the government a few weeks ago under which the rate of the tax was halved for the non-filers to 0.3 per cent for a period of three months or the first quarter of the present fiscal to September on condition that traders would start filing their tax returns by then.

But the Naeem Mir group backtracked on its agreement with the government after the rival APAT faction led by Khalid Pervez, which has so far declined to hold talks with the government on the issue, rejected the agreement and demanded complete withdrawal of the tax.

The traders went on strike despite an assurance from finance minister Ishaq Dar to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday that the government would not “persecute” those who willingly join the tax net. He had also offered a package of incentives, including exemption from audit for a period of three years to the filers.

Addressing a news conference later in the day, APAT leader Naeem Mir pledged to continue the struggle till the government revoked its decision. He said his group will join the strike call given by the rival group on Wednesday.

“Today’s strike has been peaceful. But we cannot promise peace in future,” he said as he warned of launching street protests, blocking highways and city roads and besieging offices of the Federal Board of Revenue (FBR) in the second round of the protest if their demand was not met.

PUNJAB: Markets in most cities in Punjab remained completely closed in response to the strike call.

In Lahore, almost every retail and wholesale market remained shut. Even the traders in the small neighbourhood markets, most of which are not affected by the banking transaction tax, kept their shops shut in support of the community’s demand.

The goods transporters also joined the strike, kept their trucks off the road and staged a demonstration at Babu Sabu.

The car dealers, clearing agents and other segments of businesses outside the tax net also joined the traders against the banking tax.

Reports from other parts of the province suggest that the traders observed complete strike in most major cities like Faisalabad, Multan, Dera Ghazi Khan, Sargodha, Chiniot, Vehari, Bahawalpur, Sialkot, Sahiwal, Okara, Gujrat, Mandi Bahuddin, Kasur, Hafizabad and Gujranwala. In other places, the retail markets remain partially closed with the wholesalers observing complete shutter-down strike in every city.

At some places in Sargodha, pro-government traders were seen forcing the traders to open their shops. In some other cities, the traders also staged protest demonstrations and took out small rallies as an expression of unity against the government decision.

ISLAMABAD: Partial shutterdown strike was observed in Islamabad the tax on banking transactions. The traders vowed to keep their shutters down also on Wednesday.

A news release issued by the Islamabad Chamber of Commerce said the Joint Traders Action Committee has decided that the shutter down strike will again be held on Monday.

Most markets including Supermarket, G-11 Markaz, I-8 Markaz, Peshawar Mort, Karachi Company, Ghori Town, I-10 Markaz remained closed. However partial strike was observed in Aabpara and Jinnah Super markets.

SINDH: Major wholesale and retail markets across Sindh, including Karachi, remained closed.

A partial strike was observed in Karachi because of division among the traders.

Some markets in Karachi, Hyderabad, Sukkur and other parts of Sindh kept doing business, but their representatives too protested against the imposition of the tax and announced that they would participate in shutter-down strike scheduled for next week.

KHYBER PAKHTUNKHWA: the markets remained closed across Khyber Pakhtunkhwa like elsewhere in the country to protest against the banking tax. The protesters warned they would stop dealing through banks if the federal government didn’t withdraw the tax.

In Mansehra, the traders warned they would begin a civil disobedience movement if the bank transaction tax was not withdrawn.

BALOCHISTAN: Partial strike was observed by traders in Quetta and other parts of Balochistan.

Most traders kept their shops open because they plan to join the strike call given by the Balochistan

Chamber of Commerce and Industry for Wednesday.

Reports coming from Industrial town of Hub the business community continued their business without any hurdle. Shops were open in the main bazaars. However, some shopkeepers pulled down their shutters in Khuzdar,

Kalat, Mastung and Sibi. In Pishin, Loralai, Zhob and other areas of northern Balochistan the traders did not heed to the strike call.

(The report had been compiled from despatches of Dawn correspondents across the country.)

Published in Dawn, August 2nd, 2015

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