Taxing times: Traders call strike to protest against withholding tax

Some trade bodies to pull down shutters from next month

PHOTO: EXPRESS

LAHORE:
Despite a reduction in withholding tax on banking transactions, which took the business community by storm, some trade bodies in Lahore have called for a shutter-down strike from August 1.

Protesting against the 0.3% withholding tax imposed on all banking transactions in the federal budget for 2015-16, leaders of the trade unions have decided to halt all business activities from next month.

“We have called the strike and have a substantial number of traders supporting us,” said Anjuman-e-Tajiran Secretary General Naeem Mir while talking to The Express Tribune.

“We discussed the entire package the government offered to us but majority of the traders are not in favour of 0.3% tax and we are with that majority.”

The business community has been offered some incentives in order to become part of the tax net, like converting the black or untaxed money into white without any surcharge, exemption from sales tax and reduction in tax slabs, but no one seems to agree to the offers and they are only focusing on the withholding tax.

“These offers seem attractive but we have decided for the strike, however, we will meet Finance Minister Ishaq Dar on July 27, if he withdraws the tax only then we will take back the strike call,” Mir added.

All Pakistan Anjuman-e-Tajiran’s Khalid Pervaiz Group, another influential group in the wholesale markets of Lahore, has also given the call for strike on August 5.


Pervaiz told The Express Tribune that the tax was expected to be reduced to 0.1% during the July 27 meeting with Finance Minister Ishaq Dar.

“Even if that happens we will continue to protest, we want the government to fully withdraw this tax,” he said.

“We want to be part of the tax net but not in the manner in which the government is trying to push us, they will never succeed to put us under the tax net forcefully.”

There was a dire need to change the entire taxation system and traders were reluctant to enter the tax net due to corruption in the Federal Board of Revenue, Pervaiz said.

“What we need is time, the government may suspend this tax for six months, consult us and then put in place a reasonable taxation system and we will be happy to cooperate with them,” he added.

Published in The Express Tribune, July 25th, 2015.

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