Unfair levies: K-P traders observe strike against withholding tax

SWABI/ NOWSHERA/ HANGU/ ABBOTABAD/ PESHAWAR/ TANK/ BANNU/ MARDAN/ DI KHAN: Traders and businessmen in various parts of the province observed a strike on Saturday against the imposition of a withholding tax of 0.3% on banking transactions. They have pressed the government to withdraw the levy on transactions which exceed Rs50,000 or else they will continue to hold protests.   

A majority of markets in Peshawar remained closed as protesters were likely to hold rallies outside CM House and Governor House.

“This is totally unfair with the business community to impose a withholding tax on banking transaction,” former president for K-P Chamber of Commerce and Industry Sharafat Ali Mubarak told The Express Tribune. “We will not accept a tax worth 0.3%. This levy will encourage illegal business of transaction to flourish and negatively affect the economy.”

“If the federal government does not withdraw the tax, the businessmen of K-P will not pay the income and other taxes to the government as a sign of protest,” he added.

The former president further said they would also ask the business community to withdraw their money from banks.

The business fraternity in the province also warned that if the government did not accept its demands, it will start a long series of protests across the country.

Abbottabad

Shops and businesses in Abbottabad, Havelian, Haripur, Ghazi, Mansehra, Shinkiari, Bafa, Balakot, Battagram and Kohistan kept their shops closed from early hours of morning till 5pm. Only medical stores, eateries and a few confectionery shops were open.

Office bearers of traders associations were spotted at markets to ensure strikes are conducted successfully.

Although heavy rain in Hazara disrupted plans to take out rallies, a large number of traders held small processions.

DI Khan

The business community of DI Khan also observed the shutter-down strike against the withholding tax. Traders in DI Khan held a sit-in in the district and also held a meeting in Chogla Chowk area. Many of them also demanded the removal of Minister for Finance Ishaq Dar.

Hangu

Markets in Hangu district also remained closed during the strike. According to residents, this was the first strike in Hangu’s history where all bazaars were closed. Traders have urged the government to stop collecting the levy and threatened to start a civil disobedience movement from August 17 if the government does not comply with their wishes.

Swabi

A large number of traders in Swabi took out rallies and processions. They criticised the government’s decision to impose a withholding tax, saying it was an injustice on both businessmen and the public.

Bannu

Trader associations in Bannu observed a strike on Saturday and voiced their disappointment over the government’s decision to impose a withholding tax. Many traders told The Express Tribune that the levy is tantamount to “economic murder”.

“If the government could not provide us with relief, then it does not have the right to burden us with taxes,” a protester said. “Traders in several areas of Fata and K-P, including Bannu, are facing extortions and need from the government is protection, not another tax.”

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