Traders across Pakistan, with the support of some opposition political parties, on Wednesday staged a nationwide strike to protest the government’s attempts to bring them into the tax net, as part of commitments to the International Monetary Fund (IMF).
Among the political forces backing the traders seeking tax exemptions are the Jamiat Ulema-e-Islam (Fazl); the Jamaat-e-Islami (JI); Pakistan Tehreek-e-Insaf (PTI); and Awami National Party (ANP).
Announced last week, the strike is being observed in most major, urban centers. In Karachi, the Anjuman-e-Tajiran Karachi announced they could observe a complete closure of business, adding they were protesting against taxes and electricity bills. They also claimed the Tajir Dost scheme introduced by the government was impacting their revenues and could not be sustained in its present form. A business leader warned the strike could be extended if there is no positive response from the government.
A day earlier, traders’ representatives had visited the Federal Board of Revenue’s headquarters and expressed their discontent to Chairman Rashid Mahmood and his team regarding the Tajir Dost Scheme, which was implemented in April. The new tax rates were introduced in the federal budget for the ongoing fiscal year and took effect in August. According to sources, the government has expressed willingness to negotiate with the traders but has not received any favorable response.
In Punjab, the strike call proved largely successful, with many cities observing a total shutdown on the call of the Central Traders Association of Pakistan. There were some holdouts in Lahore, in particular, with one group resisting the strike decision while another—mostly in the city’s center—supporting it. In Gujranwala, the mobile phone association endorsed the call for strike alongside other traders.
In Khyber Pakhtunkhwa, traders’ organizations observed the strike throughout capital Peshawar, with demonstrators demanding either a reduction in taxes or their withdrawal entirely. Some organizations established protest camps in front of their shuttered markets to voice their protest.
Outside of Karachi, cities across Sindh also saw the closures of commercial areas as well as small- and large-scale businesses. “Monthly tax, withholding tax, professional tax are anti-business policies,” claimed Sindh Traders Association President Waqar Memon to media.
Maintaining the government would not bow to pressure from traders, Coordinator to the P.M. on Implementation and Monitoring Rana Afzal Khan told Geo News that talks were welcome but no group of individual could continue to avoid becoming part of the tax net.
Similarly, FBR Chairman Rashid Mahmood told daily Dawn the organization was willing to resolve any “legitimate issues” to address concerns but stressed the Tajir Dost Scheme would not be withdrawn. He noted that despite contributing roughly 20 percent to GDP, the retail sector remained largely untaxed and this could not continue.