ISLAMABAD/RAWALPINDI: Traders in the twin cities of Rawalpindi and Islamabad on Tuesday kept their shutters down in protest against the new taxation system introduced by the Federal Board of Revenue (FBR).

As another round of talks between the traders and the government failed, the markets will largely remain closed on Wednesday (today) too.

The nationwide strike call was given by a cluster of five bodies of traders. Authorities led by Adviser to the Prime Minister on Finance Dr Hafeez Sheikh and FBR Chairman Syed Shabbar Zaidi held talks with representatives of traders.

While traders in Rawalpindi gave a powerful message about their unity, many shops and outlets remained open in Islamabad.

In Rawalpindi, Raja Bazaar, City Saddar Road, Narankari Bazaar, Gunjmandi, Murree Road, Liaquat Road, Narankari Bazaar, Sarafa Bazaar, Bank Road, College Road, Urdu Bazaar, Sabzi Mandi, Mochi Bazaar, Jamia Masjid Road, Banni Chowk, Bara Market, China Market and Commercial Market remained closed throughout the day.

While protesting traders in Rawalpindi gave a powerful message about their unity, many shops and outlets remained open in Islamabad

However, small shops in residential areas remained opened. Interestingly, shops in and around Lal Haveli, the political office of Railways Minister Sheikh Rashid Ahmed, also remained closed.

Medical stores also participated in the strike. The strike remained peaceful and no incident of any forceful closure of shops was reported.

Shahid Ghafoor Paracha, the president of Anjuman Tajiran Rawalpindi, said the protest would continue on Wednesday.

“Prime Minister Imran Khan should play his role in resolving the problems of the business community otherwise we will hold a rally to Parliament House and stage a sit-in on Constitution Avenue,” he said.

“We will see the response of the government in a few days. If the government failed to accept our demands the traders will announce their new plan of action.”

Mr Paracha said the complete strike in Rawalpindi proved that the traders were ready to continue their struggle to get their demands met.

“Production of the computerised national identity card (CNIC) for purchase of any commodity or product valuing more than Rs50,000 is an unreasonable condition set by the FBR,” he said.

Rawalpindi Cantonment Traders Association Secretary General Zafar Qadri said the traders just wanted the government to simplify the tax procedure.

He said small traders and the citizens were already facing severe financial crunch and the government had levied heavy taxes on mere assumptions.

As the talks remained inconclusive, Dr Hafeez Sheikh criticised the traders for not paying their due taxes.

“We actually reminded them the fact that an overwhelming majority of them were not paying due taxes,” he told the media at the finance ministry.

Dr Sheikh said out of the around 3.5 million traders across the country, only 392,000 were in the tax net.

“The government is trying to bring all the 3.5 million traders into the tax net which would help enhance the overall tax base. The contribution of traders in economic development cannot be ignored and we want to tap that potential.”

The adviser said talks with traders had not ended and were underway and would bring positive results.

On the other hand, Ajmal Baloch, president of All Pakistan Anjuman Tajiran, criticised the government functionaries saying they were pushing traders to become violent or break the law, including blocking roads.

“They are only wasting our time,” Mr Baloch said, adding: “Either they are too smart and trying to fool us or they are inviting aggression from our side.”

He blamed the adviser to PM and the FBR chairman for backtracking from the decisions taken in their earlier talks.

“The strike will continue and we will request those who had opened their outlets today to observe a shutter down tomorrow (Wednesday),” he added.

Meanwhile, Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to hold talks with the traders to resolve their issues.

Mohammad Ahmed Waheed, the ICCI president, said the current situation in the country and the state of economy could not afford strikes and shutdown of business activities.

“We appeal to the prime minister and the federal finance minister to give due consideration to the demands of traders that have forced them to go on a strike,” he said in a statement. Instead of enforcing tax laws in one go, the government should adopt a gradual approach to broaden the tax base, he added.

The ICCI chief said it was difficult for small traders to maintain accounts of their income and expenses and if they were registered in the sales tax it would enhance their cost of doing business.

“The FBR should engage traders in the dialogue process as traders also want to resolve the issue through talks,” he said.

Published in Dawn, October 30th, 2019