LAHORE/KARACHI/ISLAMABAD - Traders will hold shutter down strike on Saturday (today) across the country from Karachi to Khyber against 0.3 per cent withholding tax on the banking transactions and other heavy taxation measures of the federal government. On the other hand, unlike traders of other cities of the country, the business community of the federal capital on Friday decided to observe the shutter down strike on Monday (August 3).
It is relevant to mention here that the traders of the country were already divided over observing strike against withholding tax on banking transactions, as one group of traders would observe strike today (Saturday) and the other one on August 5.
In Lahore and many other parts of the country, majority of traders are holding today’s shutter down strike on the call of All Pakistan Anjuman-e-Tajiran. All the major groups of trade bodies have announced to support the strike however Pakistan Anjuman-e-Tajiran Khalid Pervaiz Group will not back the shutter down.
Addressing a press conference at Lahore press club, All Pakistan Anjuman-e-Tajiran central general secretary Naeem Mir said that all major markets have announced to back today’s shutter down strike call of All Pakistan Anjuman-e-Tajiran. He said that the markets which announced to remain closed on first of August included, Anarkali, Mall Road, Panorama Centre, Hall Road, Bidden Road, Urdu Bazar, Mclod Road, Brandreth Road, Shah Alam market, Rang Mahal Market, Kashmiri bazaar, Ichrah bazaar, Liberty Market, Akbari Mandi, Badami Bagh Auto market, Moti bazaar, Soha bazaar, Dabbi Bazar, Ferozpure Road, Multan Road etc. Naeem Mir said that whole business community, including transporters were united, as several other groups of transporters bodies had also been invited to join hands for the countrywide strike on Aug 1.
In Karachi, over 255 traders and market associations have announced to support the shutter down strike call for Saturday that included Sindh Jewelers Group, Saddar Alliance, MA Jinnah Road Sports Traders Association, Trade Union of Quaidabad, KMC Market Association Soldier Bazar, Gulberg Town Property Dealers, Gulshan-e-Iqbal Traders Group, Garments Traders and several others. President Small Traders Karachi Mehmood Hamid said that market associations had assured them of their complete support for the shutter down strike.
President Small Traders Karachi said, “We have visited markets in Saddar, Old City area, North Karachi and other areas of the metropolis and were assured of complete support from entire community,” he said, adding that those who had given separate dates for the shutter down strike wanted to hurt the unity of business community across the country. He said that if the government would not accept their demands then they would continue to observe more strikes nationwide unless the tax is withdrawn. He also lambasted the government for imposing 14 percent withholding tax on internet use and said that all the internet companies had shifted this burden on the consumers and started notifying consumers over increase in their rates.
Naeem Mir made it clear that traders groups which are holding talks with FBR are not the real representatives of traders. Today’s complete shutter down will open the eyes of the govt and if our demands are not met we will make further strategy to prolong our strike, he added.
On the other hand, Finance Minister Ishaq Dar has said, “There was no excuse for holding strikes and harming the economy”. He further said that the fears, apprehensions and misunderstandings of the traders will be addressed appropriately.
Talking to president of the Federation of Pakistan Chambers of Commerce and Industry Mian Idrees, who was accompanied by former president FPCCI, Zubair Tufail, Ishaq Dar reiterated that the levy of withholding tax was only applicable to the non-filers and the business community should have a clear understanding of this fact.
The FPCCI leaders discussed the issue of withholding tax on banking transactions with the minister in detail. They informed the minister about meetings with traders and representatives of various business spheres to ascertain their standpoint and apprehensions with regard to the withholding tax.
The filers, whether their income was in taxable limit or not, were all exempted from paying this tax. So they had nothing to fear from the imposition of withholding tax, Dar said. He added that this was a golden opportunity for the traders to file their returns of income with the tax authorities. On becoming filers they would automatically avail facility of exemption from withholding tax on banking transactions.
He said FBR was pursuing business friendly policies and would welcome new entrants, broadening the tax net. The traders should completely remove any doubts from their minds that they would be subjected to persecution in future.
The finance minister said it was the responsibility of the citizens to fulfill their obligation towards strengthening of national economy and the business community keeping in view this spirit should file their returns.
The minister said it had come to his notice that in some instances banks had deducted withholding tax on banking transactions of filers. He added that SBP had been asked to instruct banks not to deduct withholding tax from banking transactions of filers and reverse the entries where this tax had been deducted erroneously.
In Islamabad, the consensus decision for complete shutter down on 3rd August was announced by Abdul Rauf Alam, Chairman, Joint Traders Action Committee during a meeting of business community at Islamabad Chamber of Commerce and Industry.
The traders vowed that they would not accept forced collection of withholding tax on banking transactions and called upon the government to immediately withdraw 0.3 percent WHT on banking transactions of Rs.50,000/- and more per day. They said that government should avoid coercive measures for tax collection and make efforts to expand tax net in consultation with all stakeholders including business leaders of the country.
Mir made it clear that the traders would not hold any dialogue with the government on the issue. He said that the PML-N had formed the government with the support of business community and now it is taking anti-business decisions. He said if the withholding tax was imposed despite their reservations it would hamper trade and economic activities and also tarnish the government’s image.
During the press conference, Naeem Mir was accompanied by the representatives of all major wholesale and retail markets, including APAT Lahore president Agha Adnan, All Pakistan Anjuman-i-Tajiran Punjab president Mehboob Sirki, Qaumi Tajir Ittehad Pakistan president Sheikh Mushtaq, All Pakistan Anjuman-i-Tajiran Lahore president Tariq Feroze, LCCI Azad Group chairman Raja Hassan Akhtar, Lahore Traders Alliance president Safdar Ali Butt, Khidmat Group chairman Babar Mehmood, Shah Alam Market Board president Kh Aamir, Walled City Markets board president Haji Tahir Naveed, Litton Road president Malik Nazim, Fruit Market president Ch Ejaz, general secretary Haji Ramazan, Wahdat road president Ch Fayyaz, Hall Road president Shabbir Labha and Akbari Mandi president Anwar Bobi.