Withholding tax: Traders to go on strike

PESHAWAR:

Traders and the business community in the city will observe a complete shutter-down strike on Saturday (today) against the imposition of withholding taxes on banking transactions by non-filers of tax returns.

Insiders familiar with the matter told The Express Tribune, traders and businessmen will organise protests and rallies to press the government to withdraw the levy. Protesters are likely to hold a rally outside CM House and Governor House.

Leaders of various trade and business unions and associations have thrown their weight behind the strike. Earlier this week, they made a series of announcements in favour of the protest and have decided to close their shops and businesses.

Better preparation

The district administration plans to take security measures to maintain law and order in the city. Police and civil administration officials told The Express Tribune that security forces will be deployed in sensitive areas to deal with any untoward incident. No one will be permitted to enter these areas on the eve of the protests and rallies.

Save the date

Although a large number of political leaders have voiced their support for the strike, certain elements are reluctant to support the protest. Tajir Insaaf Group and other small-scale associations said they will instead observe a shutter-down strike on August 5.

Tax evasion

Earlier in July, the federal government’s decision to impose a withholding tax of 0.6% on daily banking transactions amounting to over Rs50,000 sparked protests across the country. The levy is likely to affect traders and businesses. As a result, incensed traders have held demonstrations to raise their objections against the implementation of the tax.

On July 9, the federal government and business community reached an agreement which served as a face-saving mechanism for both parties. Under the agreement, traders agreed to be brought within the tax net in return for a 0.3% reduction in the rate. It was unanimously decided the government will halve the withholding tax by September 30.

Published in The Express Tribune, August 1^st, 2015.