ISLAMABAD: Traders in the city have threatened to launch a countrywide no-banking day and shutter-down strike if the withholding tax was not withdrawn.

The traders demanded the suspension of the 0.03 per cent withholding tax on all banking transactions and also asked the government to return the amount deducted from them by the financial institutions since August 1, 2015.

The Markazi Anjuman-i-Tajiran, Islamabad, announced that a countrywide black day would be observed on September 2 against the withholding tax.

The traders will refrain from all kinds of banking transactions on September 4.

If the government does not respond to these protests, a countrywide shutter-down strike will be observed on September 9, it added.

Ajmal Baloch, the Traders Action Committee leader and president of All Pakistan Anjuman Tajiran (Naeem Mir group), said the Sales Tax Act 1990 needed amendments. He said all the sales tax be deducted at the manufacturing and import stage.

“The traders should be exempted from the value-added sales tax,” Mr Baloch told Dawn.

The Naeem Mir group had decided to observe a countrywide shutter-down strike on August 1 whereas its rival faction, the Khalid Pervaiz group, had given the strike call for August 5.

However, to enforce their voice, both the factions decided to launch a joint move against the tax.

The traders also demanded amendments to the Income Tax Ordinance 2001 to end the slab system. They also asked the government to reduce indirect taxation in the country.

Published in Dawn, August 31st, 2015

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