Traders to stage shutter-down strike today

Negotiations with govt over withdrawal of ‘anti-business steps’ fail

LAHORE/ KARACHI: A section of businessmen and traders is going to stage a shutter-down strike across the country on Saturday after their negotiations with the federal government, for withdrawal of “anti-business measures” announced in the budget for FY20, failed.

However, the other section, claiming success in the second round of negotiations with the government, will continue to conduct business operations as usual.

Karachi-based businessmen and traders first gave a call for the shutter-down strike about three weeks ago, but deferred the move on assurance by the government that their issues would be addressed through negotiations.

However, their talks with Prime Minister Imran Khan and his economic team remained unsuccessful on Wednesday this week.

They asked the government to withdraw the condition of acquiring a copy of computerised national identity card (CNIC) of buyers of factory production, withdraw 17% value-added tax on traders and restore the old system of zero-rated tax facility for five major export sectors.

Later, the businessmen and traders from Multan, Islamabad and Lahore announced a one-day shutter-down strike for Saturday.

“Businesses in the entire country will remain closed on Saturday,” All Karachi Tajir Ittehad’s leading member Muhammad Rizwan told The Express Tribune.

A Karachi-based group under the umbrella of All City Tajir Ittehad, however, claimed success in the second round of negotiations with the federal government.



“The government has accepted 60-65% of our demands out of the total 11 points we presented for amendment to the federal budget. Therefore, we are no more part of the grand strike call for Saturday. We will resume our business as usual,” All City Tajir Ittehad member Abdul Qadir Noorani said.

The government has accepted their major demands including the withdrawal of the condition of acquiring CNIC copy of unregistered traders, revising down the rate of value-added tax, FBR team visiting markets, FBR charging tax on net profit and not on turnover and charging fixed income tax in four different slabs instead of paying the tax as per standard rates.

“We remained in talks with two members of the National Assembly till 1am on Friday,” he said.

“We are constantly in contact with the two MNAs and FBR Chairman Shabbar Zaidi, who has assured us that he will issue an SRO in a few days to officially implement the demands accepted and has formed three to four committees to push ahead with negotiations on the remaining 35% demands,” he said.

Shershah Scrap Market President Malik Zahid Dehalvi also announced the resumption of business as usual on Saturday.

On the other hand, the group staging the strike said Sindh Governor Imran Ismail and two members of the National Assembly held sideline meetings with some small groups of traders to pacify them, saying their demands would be accepted if they did not take part in the strike.

“The fellow traders should remember that PM Imran did not find time to meet traders while visiting Karachi on Wednesday while the FBR chairman categorically turned down the 11 demands. So what is the point of not going on strike,” said Rizwan, who is also President of the Karachi Electronics Dealers Association.

All Traders Federation Abbottabad and All Traders Association Havelian would observe complete shutter-down to express resentment over the new taxes imposed by the government, said All Traders Federation President Naeem Awan.

A meeting of traders was also held at Havelian, presided over by Havelian Traders President Khursheed Azam, and they endorsed the decision of the All Pakistan Traders Association’s decision to observe a complete strike.

In the meantime, Nan Bai Association also decided to hold a protest rally and stage strike over the increase in flour cost with the increase of Sui gas prices as they demanded permission to increase the price of ‘Roti’ or reduce its weight.

The Lahore Chamber of Commerce and Industry (LCCI) also put its weight behind the traders who were going on strike.

“LCCI stands with the business community. The government should immediately resolve their issues and must find out an amicable solution in consultation with the stakeholders,” said LCCI office-bearers.

He said economic issues created in 10 years could not be resolved in a month. The business community has reservations over various taxation measures that have caused panic amongst the business community.

“Difficult taxation system and high frequency of taxes have forced the business community towards protest that is not a good sign for the economy,” he said.

“All Pakistan Anjumn-e-Tajran will observe the countrywide shutter-down strike from Karachi to Khyber-Pakhtunkhwa and Kashmir to Gwadar in protest of unfair taxes imposed by the federal government in budget 2019-20,” said All Pakistan Anjumn-e-Tajran General Secretary Naeem Mir.

He claimed that other trader bodies like Qaumi Tajir Ittehad, Lahore businessmen front of LCCI, and all other trade bodies of the city are also going to joint this countrywide shutter down strike.

Published in The Express Tribune, July 13^th, 2019.

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