LAHORE - Traders and businessmen, considered to be the mainstay of PML-N government, observed a shutter down strike in most parts of the country on Saturday against imposition of 0.3 percent withholding tax on banking transactions of over Rs50,000.
With full backing from different trade as well as industrial associations and political parties, including the PML-N Traders Wing, traders kept all commercial activities and business centres closed in almost all major cities of the country.
In Islamabad more than 90pc markets were closed, Khyber Pakhtunkhwa was completely closed while there was partial strike in Sindh cities. In Punjab, which is considered political base of the ruling PML-N, the effect of strike was felt heavily. Banners written with slogans against the withholding tax have been put on display in the markets.
While the business community rejected the federal government’s decision to impose the levy on bank transactions, several trade and industrial associations’ representatives including All Pakistan Business Forum, Lahore Chamber of Commerce and Industry, FPCCI and Saarc Chamber have urged the government to withdraw the tax to avoid any confrontation.
Because of the new tax, people have already started using alternative means of payments, bypassing the banks, a development which will not dent the government tax collection but also deprive the banks of their service charges.
In Lahore, capital of Punjab, even those business centres and markets where pro-PML-N trade unions are very strong were also completely closed on Saturday. For example the photo goods wholesale market near Gawalmandi was completely shut despite the fact that PML-N Lahore Traders Wing President Nasir Saeed is the president of Photo Goods Market. The Liberty Market was totally closed, including Alfatah Store of the PML-N Traders Wing Chairman Irfan Iqbal Sheikh. Almost all other markets of Lahore also remained closed to protest the withholding tax (WHT).
The wholesale as well as retail markets representatives said that they would also shut the markets on Aug 5 on the call of All Pakistan Anjuman-e-Tajiran Khalid Pervaiz Group whose Urdu Bazaar market remained almost 100 percent open. Anjuman-e-Tajiran Balochistan and Balochistan Chambers of Commerce have also announced to keep their markets shut on Aug 5, which remained open on Saturday.
APAT central general secretary Naeem Mir claimed that markets in all major cities and towns of Punjab and KP and most parts of Sindh, Azad Kashmir and Gilgit Baltistan remained closed on Saturday. Mir, while addressing a press conference at Lahore Press Club, said All Pakistan Anjuman-i-Tajiran has called its executive committee meeting in Islamabad which would also be attended by all factions of APAT and other trade associations for the future plan of action if the government did not accept their demands.
He was accompanied by Qaumi Tajir Ittehad central president Sheikh Mushtaq Ahmed, APAT Punjab president Ch Mehboon Sirki, LCCI Azad Group chairman Raja Hassan Akhtar, Lahore Traders Alliance president Safdar Ali Butt, APBF Lahore president Ch Amjad. Naeem Mir said that traders will also go on strike on Aug 5 in support of other faction of APAT.
Mir said the traders have proved that they are united against government’s cruel taxation system and added the government cannot impose harsh taxation by force on them. He also appreciated the political parties for supporting the traders cause against the imposition of withholding tax on bank transactions. Now traders have several options including protests, demonstration and sit-ins in front of FBR offices and parliament house to persuade the government to withdraw the unjustified levy, he added.
Pakistan Anjuman-i-Tajiran president Muhammad Ashraf Bhatti (Bhatti group) also addressed a press conference at Hall Road, warning the govt to withdraw WHT otherwise traders will announce shutter down for indefinite period.
Saarc Chamber vice president and FPCCI former president Iftikhar Ali Malik warned the government that if tax on all bank transactions is imposed forcefully by the government, it would not only hamper the trade and economic activities but would also tarnish the image of the government. HE said the government would have to find out an amicable way to the issue of withholding tax on bank transactions in order to ensure a business-friendly atmosphere in the country.
Iftikhar Ali Malik said that though formation of a committee and cut in withholding tax was a step in right direction but business community was yet not satisfied and wanted complete withdrawal of withholding tax.
FPCCI President Mian Adrees said that imposition of that tax would force business community to conduct its monetary transactions in cash that would promote the undocumented economy.
APBF president Ibrahim Quresh said all business-related decisions should be taken in consultation with the stakeholders as was being done in the developed countries. He said Federal Finance Minister should take all trade and industry related decision in consultation with the business community which is backbone of the economy.
The PML-N Traders Wing chairman Irfan Iqbal Sheikh said that measures like imposition of withholding tax on bank transactions would not render any service to the economy as it has been observed that tax collection machinery has no authentic data to make difference between filers and non-filers.