Traders strike: Shops remain closed over withholding tax

ISLAMABAD:

A shutter-down strike was held by traders in Rawalpindi and Islamabad on Wednesday, as part of a nation-wide protest, against the government’s decision to levy a 0.3 per cent withholding tax (WHT) on banking transactions.

A majority of traders, retailers and wholesalers in Raja Bazaar, Saddar, Murree Road, Aabpara, Melody, Jinnah Super Market, Peshawar Morr, Sabzi Mandi observed the strike.

The call for the strike was given by the trader’s supreme council, the joint body of the All Pakistan Anjuman-i-Tajran, against the federal government for extending the tax’s scope to cash withdrawals and other banking instruments.

The WHT was introduced in this year’s annual budget, and applies to cash withdrawals as well as all transfers over Rs50, 000 per day through any financial instrument or account-to-account payments.

The WHT rate also doubles to 0.6 per cent for traders who have yet to file income tax returns.

Pharmacies, hotels as well as milk and vegetable shops were exempted from the strike. In major shopping centres and plazas, owners of small eateries also observed the strike voluntarily.

Traders from all across the country are represented in the supreme council.

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