In protest: Traders protest against withholding tax

The shutter-down strike was called off by 2pm

HYDERABAD/ KARACHI: Traders across the provincial captial observed a partial shutter-down strike against the imposition of 0.3 percent withholding tax on banking transactions on Saturday. The strike was called by the All Pakistan Traders Association.

Major markets in Karachi including Joria Bazaar, Boulton Market, Liaquatabad, Haidri, Saddar mobile market, electronics market, Jama Cloth as well as trade centers in Hyderabad remained closed.

The strike was also observed in Mirpurkhas, Sanghar, Tando Allahyar, Badin and Nawabshah districts. However, it was called off by 2pm.

Read: Traders’ call: PTI endorses strike call against withholding tax

Speaking to The Express Tribune, Karachi Electronics and Small Traders Association official Shahid Sehar said, "I am disappointed by the decision to call off the strike. The traders are divided into factions. This bickering is hurting the business community of the country."

"We are unable to put pressure on the government because we are divided," he pointed out.

Despite his disappointment with the traders' unions' decision to resume business in the afternoon, Sehar will participate in the next strike that will be observed on Wednesday (August 5).

"Ever since the announcement of withholding tax [in the federal budget 2015-16] many traders and buyers are holding back payments to avoid paying the withholding tax," he said.

Read: Losing Money: Anti-withholding tax protest to begin

"The tax imposition will increase the cost of business and eventually traders will take the money from consumers' pockets," he added.

Federation of Pakistan Chambers of Commerce and Industry president, Mian Muhammad Idrees, said that the levy of withholding tax was only applicable to the non-filers.

The federal government imposed 0.6 per cent withholding tax on all banking transactions worth Rs50,000 and above, in the federal budget. After negotiations the government announced to reduce the rate to 0.3 percent. However, traders from all over the country demanded the termination of withholding tax.

Published in The Express Tribune, August 2^nd, 2015.