PESHAWAR: The local traders have decided to hold rallies and demonstrations on Sept 2 to protest imposition of 0.6 per cent withholding tax on bank transactions.

They have displayed black banners inscribed with slogans against the imposition of tax in different areas of the provincial metropolis. They have also announced schedule for shutter down strike and boycott of bank transactions.

“We have decided to hold peaceful rallies and protest demonstrations with the hope that federal government will withdraw its decision about imposition of tax,” Haji Haleem Jan, the president of Anjuman-i-Tajiran Khyber Pakhtunkhwa, told Dawn.

He said that the business community across the country rejected the tax as it was ‘unfair withholding tax’. The decision should be withdrawn immediately as shopkeepers and traders had announced schedule for protest campaign in that regard, he added.

Decide to hold rallies, observe shutter down strike and boycott bank transactions

“We have already conveyed our reservations to the federal government about the tax. The businessmen will boycott all kinds of bank transactions on Sept 4 and observe complete shutter down strike on Sept 9 if the tax is not abolished,” said Mr Jan.

He said shutter down strike would also be observed on Oct 7 across the country after Eidul Azha against imposition of withholding tax. He said that shopkeepers and traders were united and they could go to any extent for acceptance of their demands.

Mr Jan said that it was a very cruel tax, which would affect every segment of the society including retired employees and widows. “It will certainly promote illegal business of Hundi as people are not ready to pay such illogical taxes,” he said.

Similarly, Ziaul Haq Sarhadi, the director of Pakistan Afghanistan Joint Chamber of Commerce and Industry, said that imposition of withholding tax was injustice with the people of Khyber Pakhtunkhwa as the province was already hit hard by violence and the business community was unable to afford any new tax.

He said that most of the industrial units in the province were closed and businessmen were shifting from the province to different cities and abroad for their survival.

“We are already paying several kinds of taxes and our earning is next to nil. In the prevailing situation, no one can afford to pay a new tax,” said Mr Sarhadi said. He added that it was duty of the government to abolish it immediately.

Referring to the process of import and export, he said that the businessmen had to depend on a meagre commission.

“We cannot support withholding tax. The federal government should withdraw its decision to remove unrest among the business community,” he added.

Published in Dawn, August 31st, 2015

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