Traders in major cities of all four provinces observed shutter-down strike on Saturday against the withholding tax on bank transactions.
Despite differences among different trader organisations over the schedule of strike, traders in major cities across the country kept their shops, markets and trade centres closed to record their protest against 0.3 per cent withholding tax.
Another national group of traders would hold a shutter-down protest on August 5.
Markets in various cities of the country, including Islamabad, Lahore, Faisalabad, Peshawar, Karachi, Rawalpindi, Hasan Abdal, Chakwal, Faisalabad, Kasur, Gujrat, Gujranwala, Burewala, Chiniot, Sialkot, Hyderabad, Sukkur, Larkana, Mirpur Khas, Jacobabad, Jacobabad, Nawab Shah, Badin, Matli, Tando Allahyar, Haripur, Abbottabad, Mansehra remained closed.
Protests were also held in more than a dozen of cities in support of the traders’ demand for complete abolition of the tax. They said that businesses were already suffering due to various government policies and instead of resolving the issues already facing businessmen, the government was adding more taxes to their woes. Some trade groups even went to the extent of saying no to any future negotiations with the government, saying they would expect nothing less than a complete withdrawal of the tax.
Citizens in the affected cities were directly affected by the strike. Many people Pakistan Today spoke to have urged the government and authorities concerned to hold dialogue with the traders and resolve their issues so that routine life is not paralyzed by the standoff between the two sides.
Talking to Pakistan Today, Federation of Chamber of Commerce and Industry (FPCCI) President Mian Mohammad Adress said that his organisation was trying to bridge the differences between the traders and government over the deduction of withholding tax (WHT) on cash withdrawals.
He said the government and traders are using pressure tactics against each other to resolve the issue. The traders could have postponed the strike for one month to resolve the issue as the talks were still going on.
“On our (FPCCI) intervention, the government is ready to facilitate the traders provided they get registered as taxpayers by obtaining National Tax Number.”
He said the government has formed three committees to resolve the issue and was hopeful some amicable agreement would be possible within the next few days. “Traders must realise that no-where in the world businessmen could operate outside the tax net, they will have to join the tax net for their progress as well as of the country,” he said.
“If a person earning Rs 50,000 per month pays income tax then why a trader who earns Rs 5,000 to Rs 10,000 per day cannot pay taxes?”
He said the government is ready to facilitate traders who voluntarily come under the tax net therefore they should take benefit from it. “By obtaining NTN in one day the traders can avoid WHT from the next business day. If the number of taxpayers’ increases then the ratio of the taxes could be reduced,” he added.
President Rawalpindi Chamber of Commerce and Industry Syed Asad Mashadi said the traders have some genuine concerns over WHT. The turnover registration is a major concern for traders and it could be also settled through negotiations. The chambers are trying to bridge the issue through negotiations between traders and FBR, he said.
He said the income tax and sales tax committees set up by the FBR having trade representatives will come up with solutions to address the issue. The committees are likely to present their reports by August 13 while the government has assured legislation within next 15 days. Finance Minister Ishaq Dar has assured that the recommendations of the committees will be implemented forthwith through a presidential ordinance to facilitate the traders.
