Traders in all major cities including Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Multan on Wednesday observed a shutter-down strike in protest against the imposition of 0.3 per cent withholding tax on banking transactions.
In Karachi, major markets including Joria Bazaar, Boulton Market, Timber Market and other trade centers were closed.
President of All Karachi Traders Union Attiq Mir stated that the government should withdraw withholding tax and hold talks with traders to address their concerns. He said some clauses in the tax system were conflicting.
In Lahore, President of All Pakistan Traders Union Lahore Mujahid Maqsood Butt said that traders’ associations of all major markets participated in the strike.
In Multan, all major markets including Cloth Market Board, Sarafa Bazaar, Daal Bazar, Rail Bazaar, Machli Mandi Bazaar, Khand Bazaar, Urdu Bazaar, Scrape Metal Bazaar, Gondlanwala Road, Thakur Singh Gate, Electronics Market and other trade centers remained closed.
President of Gujranwala Chamber of Commerce Khawaja Khalid Hassan and Goods Transport Association President Wasifur Rehman Butt said that a complete strike was observed by their associations against the government’s decision to impose WHT.
The government had initially announced 0.6 per cent tax on banking transactions for all non-filers but it later conceded to the traders’ demand to reduce it to 0.3 per cent until September provided the non-filers register themselves with the Federal Board of Revenue (FBR) and become part of the tax net.
Talking to Pakistan Today, President All Pakistan Business Forum Ibrahim Qureshi said that the government should announce business-friendly policies to attract investment in the country. “The government should understand that protests and strikes always hit the economic activities hard in an atmosphere of terrorism therefore it should not push the traders in a closed alley,” he said.
He also criticised the unadjustable 8 per cent withholding tax on revenue of service sector. He said the tax was putting the sustainability of this sector at stake in a country where cost of doing business is already very high.
According to the banking sources, the banks are still facing liquidity crisis in the banking system as most of the businesses are making direct payments and the State Bank of Pakistan is supporting banks through money injections operations.
