Shopping malls, business centers, markets remain closed in all major cities in Punjab, Sindh, KP, Balochistan and Islamabad.  JI, JUI-F, PTI, ANP support shutter-down strike called by traders.  Political leadership has failed, says All Pakistan Anjuman-e-Tajiran.  FBR chairman says new tax scheme will be implemented at any cost.

ISLAMABAD/LAHORE/KARACHI/QUETTA/ PESHAWAR  -  Traders on Wednesday observed shutter-down strike across major cities against the government’s policies including ‘Tajir Dost Scheme’, agreements with Independent Power Producers (IPPs) and inflated electricity bills.

Major markets in Karachi, Lahore, Rawalpindi, Faisalabad, Peshawar, Quetta, Islamabad, Hyderabad and others cities were witnessed closed, causing problems for the people who struggled to buy goods and commodities. Only some food outlets, hotels, medical stores and bakeries remained opened in different cities.

Political parties including Jamiat Ulema-e-Islam Fazl (JUI-F), Pakistan Tehreek-e-Insaf (PTI), Jamaat-e-Islami (JI) and Awami National Party (ANP) supported the strike of the traders. On the other hand, the government rejected to withdrawn the Tajir Dost Scheme’. The FBR chairman said that scheme would be implemented at any cost for registration of traders.

The Federal Board of Revenue (FBR) said that the traders have to be registered and pay their due amount of taxes. An official of the FBR said that the government could negotiate on reducing taxes under the scheme.

Officials said that the FBR will soon issue a notification regarding the amendment in SRO including exempting small traders from taxation. It will introduce a simplest Income Tax form in Urdu language for the benefit of the traders. The FBR has also suggested not to tax traders with Rs100 million annual turnover sale volumes and the tax authority is also likely to amend income tax table for the traders.

The Federal Board of Revenue (FBR) had announced its Tajir Dost Scheme, aiming to bring traders and wholesalers into the formal tax structure as required by the IMF. The IMF has urged the FBR to implement the tax structure for retailers starting in July. The FBR has so far registered over 58,000 small traders/new shopkeepers under the scheme. The government had projected to collect Rs50 billion from the scheme by registering around 3.2 million retailers in the current fiscal year.

To protest against the government’s tax reforms, traders across the country observed nationwide strike with support from traders associations and political parties. “The political leadership has failed,” Javed Shams the president of the All Pakistan Anjuman-e-Tajiran’s Sindh chapter told reporters while announcing his support for the nationwide strike.

Shams added that all businesses were completely closed in all small and big cities of Sindh. “[We] reject the hike in taxes and electricity bills.” He added that the ruling class wants to take away the right to live from the business class and the people, insisting that the “Trader Friendly Scheme” is not acceptable in its current form.

The Karachi Electronics Dealers Association also backed the strike call. KEDA President Mohammad Rizwan said all trade unions from Karachi to Khyber are participating in the strike. “If the issues are not resolved, the duration of the strike may increase,” said Rizwan.

All Karachi Traders Union President Atiq Mir termed the strike as one of the citizens and not traders. “The common man is worried about inflation.”

Meanwhile in Punjab cities all business centres were closed following the call of nationwide strike by theCentral Traders Association of Pakistan.

In Gujranwala, all small and major markets in the cities’ inner parts including Cloth Market, Steel Market and Sanitary Market, as well as those in the Satellite Town remained closed. The city’s mobile phone association has also endorsed the call for strike.

In Khyber Pakhtunkhwa’s Peshawar, traders’ organisations observed complete strike, as various markets remained closed across the city with trade unions demanding the withdrawal of the hike in power bills and reduction in tax rates.

All markets including Sadar Bazaar, Shafi Market, Qisa Khwani and Khyber Bazaar have been shut, while traders organisations have set up protest camps in front of the closed markets.

In Dera Ismail Khan, traders are observing a complete strike with all commercial centers closed following support from traders’ association, traders’ union and traders’ action committee.

Addressing a presser in Karachi, JI Spokesperson Qaisar Sharif said that all traders and industrialists support the party’s call for a strike. “The public has rejected the government’s attempts to stop the strike. If the problems are not resolved, a future action plan will be presented after consultation with traders and industrial organisations,” the spokesperson added.

Qaisar insisted that the government end the unfair contracts with IPPs and immediately implement the agreement made with JI. “Jamaat-e-Islami will not back down from its demands without providing relief to the people.”

In Lahore, JI and traders’ organisations observed the strike as most markets and businesses of the city remain closed for the day. All small and big markets as well as shops including bakeries, ovens, hotels, general stores also remain shut on the appeal of traders in Rawalpindi, where the business community and trade associations including the city’s Oil Tanker Association have extended their support for the strike.

A strike was also observed in other cities of Punjab such as Rahim Yar Khan, Dera Ghazi Khan, Rajanpur, Chichawatani, Sargodha, Choonian, Taxila, Chakwal, Patoki, Changa Manga and Arifwala.

In Balochistan, too, traders have kept their shops and business closed in protest across cities including Quetta, Hub, Harnai and Mastung, among others.

Other KP cities observing the strike include Mansehra, Bajaur, Charsadda, Kirk, Bannu and Malakand.

Earlier this week, the religio-political party had announced to observe a shutter-down strike across the country on August 28 (today) to mount pressure on the coalition government to provide relief to the masses.

The announcement came after the party postponed its 14-day long sit-in on August 9 following successful negotiations with the government over demands including slashing high power tariffs and reviewing agreements with the Independent Power Producers which have been under the spotlight as people are paying hefty bills blamed on capacity payments being made to independent power producers.

In March, the Federal Board of Revenue (FBR) introduced the ‘Tajir Dost Scheme’ to bring traders and wholesalers into the formal tax structure as required by the International Monetary Fund (IMF). The move had led to concerns and reservations among the traders.

Earlier this month, the traders’ community, including Markazi Tanzeem-i-Tajran Pakistan and All Pakistan Anjuman-i-Tajran, announced a nationwide strike against the Tajir Dost Scheme as well as heavy taxation and inflated electricity bills.

Iftikhar Ahmed Sheikh, president of the Karachi Chamber of Commerce and Industry (KCCI), had urged all its members to fully support Wednesday’s countrywide strike by closing their businesses.

Muhammad Kamran Arbi, president of the Site Association of Industry, has extended firm support to the traders’ strike. The Korangi Association of Trade and Industry and the Central Association of Tajran Pakistan have also announced their support.

The Pakistan Oil Tankers’ Association, in its statement issued on Tuesday, said it “fully supported” the call for a strike by the trader’s community and the JI.

The oil tankers’ body asserted the strike was the “voice of the country’s poor, helpless and destitute public against the heavy taxes and atrocious electricity bills”.

The Tehreek-i-Labbaik Pakistan (TLP) also endorsed the call for a strike, the chief of its Karachi chapter, Mufti Qasim Fakhri, said in a statement.

Criticising the government for “enjoying privileges amid sky-high inflation”, Fakhri termed the imposition of taxes a “part of a foreign conspiracy”.

“Where are those who made promises to the public while seeking their votes?” the TLP leader asked.

In Lahore, shops on Hall Road, where the JI has set up a camp to mobilise traders and the general public, as well as on Mall Road, remained closed as traders observed the strike.

The strike was extended to Multan, Faisalabad, Islamabad, Rawalpindi, and other cities of Punjab as well.

Merchants on the Chakwal-Talagang road and in the main market of Kharian city kept their shops closed.

In Islamabad, in a rare show of unity, not only traders and small businesses but many outlets of national clothing brands participated in the shutter-down strike.

Contrary to the previous protest strikes and shutter-downs by the business community, even tea stalls, local restaurants and tandoors suspended their activities against the ‘Tajir Dost Scheme’.

“Apart from the top-line food chains, we requested all branded clothing outlets and other stores to be part of the strike and they obliged to our request,” said Abdul Rehman, president of the Traders Welfare Association of F-7 Markaz.

The strike was also observed at other high-end markets, including Blue Area and F-6 Markaz. The impact of the shutter-down protest was clearly visible in the low and midlevel markets of Islamabad as well as in the outskirts of the city. Thanks to the support of the Nanbai Association, almost all the tandoors in the capital remained closed on Wednesday. At the same time, however, the city’s meat shops were closed due to their weekly off. The supporters of the two main rival bodies of traders — the Markazi Tanzeem-i-Tajran Pakistan and the Anjuman Tajiran Pakistan (ATP) — were seen surveying the markets together to ensure that the strike call was being observed.

The leaders of the traders’ bodies termed the shutter-down strike as a referendum against the “malpractices” of the FBR.

“We demand the government to reform the tax collecting body to bridge the trust deficit between the tax payers and the FBR,” said ATP President Ajmal Baloch.

“Nobody is against tax payment or being in the tax net. But can anybody, including the prime minister or the army chief, give the guarantee that there will not be any harassment by FBR officials as they do with industrialists and importers?” Baloch said.

Due to the shutter down strike, the number of commuters in local transport services too was less than normal.

In KP, traders and transporters across the Malakand and Hazara divisions observed a shutter-down and wheel-jam strike against the heavy taxes. Rallies in various cities of the province were also carried out with the support of the JI.

The Balochistan Anjuman-i-Tajraan (BAT) also rallied behind the countrywide calls for shutting down businesses. The province is also reeling from the recent deadly attacks that claimed dozens of lives

Shops across Quetta — including Jinnah Road, Masjid Road, Liaquat Bazaar, Shahrah-i-Iqbal, Abdulsattar Road, Double Road and New Adda — remained closed as they took part in the strike.

Traders in the city organised a rally against the reforms introducing heavy taxes and staged a protest outside the Quetta Press Club. BAT President Rahim Kakar and other traders addressed the gathering, terming the additional taxes “unacceptable”.