Agitation: Traders observe strike against withholding tax

APAT president says traders will not be intimidated

LAHORE: Wholesalers and retailers observed a complete shutter-down strike on Wednesday city-wide against the imposition of withholding tax on banking transactions of over Rs50,000.

They warned that they would observe an indefinite strike if the government did not withdraw the tax. Wholesale and retail markets including Akbari Market, Shah Alam Market, Circular Road, Hall Road, the Mall, Gulberg, Ferozepur Road, Jail Road, Anarkali, Liberty Market, Hafeez Centre, Urdu Bazaar, Badami Bagh, Azam Cloth Market, Multan Road and Moon Market were closed.

All Pakistan Anjuman Tajiran (APAT) president Khalid Pervaiz said traders were not scared of the government or the Federal Board of Revenue (FBR). He was speaking to newsmen. Pervaiz said it did not matter that the FBR had issued tax notices to traders.  He said traders had decided to continue their struggle against the “unjust” tax and would not give in to any pressure. He said traders would call an indefinite strike if the government did not withdraw the tax.

Ashraf Bhatti, president of another APAT faction, told journalists at Hall Road that traders were united against the tax. Bhatti asked the government to immediately withdraw it. He said traders would be compelled to close their businesses and march to Islamabad otherwise. He said they would stage a sit-in before the National Assembly if the government did not accept their demand.

Leaders of trader associations said they had been peacefully protesting against the imposition of the tax for three months but the government had paid no heed to their concerns. They said traders had decided to take to the streets to express their concerns and could not guarantee peace.

Traders’ association leader Naeem Mir said traders had decided to join hands with the opposition to register their protest against the imposition of the tax. He said traders would soon organise a conference in this regard and devise a strategy to launch a nationwide protest campaign. He said traders would stage a sit-in before the FBR headquarters if the government did not budge. Mir said traders would continue their struggle till the tax was withdrawn.

The government had imposed a 0.6 per cent withholding tax on cash withdrawals and bank transfers of over Rs50,000 per day made through any financial instrument or in the form of account-to-account payments in the budget. The bank transaction tax had been introduced initially in 2008.

Published in The Express Tribune, September 10^th, 2015.