-- Except for Karachi where traders observed a partial or fragmentary strike against imposition of withholding tax on banking transactions, the markets and business centres of all major towns in the country, including Lahore, Faisalabad, Sialkot, Gujranwala and Peshawar, were largely closed on Saturday.
Hassan Abbas reports from Lahore: A partial strike was witnessed in the Urdu Bazaar, Anarkali, Ravi Road, Mughal Pura, Shahdra and Shalimar Link Road. Traders failed to adopt a unified protest strategy for Saturday since their two major splinter-bodies had differences. And there is growing anger over the controversial tax that has gripped the trading community since the government introduced it.
All Pakistan Anjuman-e-Tajiran General Secretary Naeem Mir Group Naeem Mir told Business Recorder on Saturday that all the major markets in the city remained shut and ruled out any chances of talks with the government. In response to a question on whether they will support the strike call by the All Pakistan Anjuman-e-Tajiran of the Khalid Perverz Group, on August 5, General Secretary Mir said, "After consultation with traders, they will announce whether or not they will back the call."
He went on, "If the government drops the tax, the traders will be ready to sit with it to evolve a strategy to broaden the tax net. We will also invite officials from the Federal Board of Revenue to visit markets and the traders with tax officials convincing them to bring them into the tax net." Anjuman-e-Tajiran of the Khalid Pervaiz Group President Khalid Pervez said the traders had rejected the tax but made it clear that he would hardly give in. "We will have a nationwide shutdown on August 5."
President Pervez claimed that Finance Minister Ishaq Dar never called up true representatives of traders and retailers during negotiations held last week to cut the tax rate to 0.3 percent from earlier 0.6 percent announced in the federal budget. Khalid Abbas Saif reports from Faisalabad: A complete shutter-down strike was observed here against the imposition of 0.3% withholding tax on bank transactions. Barring a few shops, almost all the shops and business centers in and around Chowk Clock Tower remained closed for the whole day to lodge a protest against this tax. Traders took out a protest procession and set up a protest camp where a 'grave' dug up for government officials. officials. No business activity was carried out in Faisalabad Yarn Market, Grey Cloth Market, wholesale cloth market, Medicine and Surgical Markets, Leather Market, Food and Grain Market, Fruit & Vegetable Markets. However, public transport was available as usual but there were not many passengers.
Khawaja Shahid Razzaq Sikka, President/Chairman Action Committee and Mehmood Alam Jatt, General Secretary, of the City Anjuman-e-Tajiran told media persons that the Business Community of Faisalabad like other cities would continue their protest till the withdrawal of WHT. Other local leaders including Haji Shamshad, Sh. Waheed Baber, Haji Suleman, Rana Faiz Ahmad, Usama Saeed Awan and General Secretary, Anjuman-e-Tajiran Punjab, Shahid Gogi, also supported the strike.
They said that instead of levying 0.3 % tax on bank transactions, the government should cut down its lavish expenses and adopt the policy of simplicity. Tahir Amin & Fazal Sher report from Islamabad: Traders Saturday observed partial but effective shutter-down strike on the call of All Pakistan Traders Association (APTA) against imposition of withholding tax on all banking transactions by non-filers of tax returns.
A rift among traders was witnessed as different associations had given different protest dates against the government decision. All Karachi Tajir Ittehad (AKTI) had announced that it would hold a protest demonstration on August 05, Islamabad Chamber of Commerce and Industry (ICCI) on August 3, while APTA called for a country-wide protest against withholding tax on August 1.
Most of the markets in Rawalpindi/Islamabad observed a shutter-down strike on the call of APTA. However, All Karachi Tajir Ittehad (AKTI) boycotted Saturday's protest on the plea that protest call for August 1 was made by a government-sponsored trade body and hence their strike call was not acceptable. A visit to different markets of the twin cities it showed that shops in major markets remained close. Banners inscribed with slogans against the withholding tax were seen in different markets of the twin cities.
Talking to Business Recorder, Shahid Ghafoor Paracha, central leader of All Pakistan Traders Association, said traders "across the country" observed a shutter-down strike against the withholding tax on banking transactions. "Traders from Karachi to Khyber are united to press the authorities for a common cause, which was evident from the successful shutter-down strike call," he added. Paracha said all the traders associations are united against the withholding tax and they have decided to keep all commercial centers closed till the acceptance of their demand.
He warned that if government failed to review its decision about the withholding tax, traders would announce their future strategy soon, and it would become difficult for the government to tackle the situation. He vowed that "forced" collection of withholding tax on banking transactions would not be accepted and called upon the government to immediately withdraw the levy. It was observed that 90 percent of the markets in Rawalpindi including raja Bazaar, Ghalla Mandi, Sarafa Bazaar, Iqbal Road, Mochi Bazaar, Wheat Mandi and commercial markets remained close. However in the afternoon, shopkeepers opened their shops and according to Paracha it was difficult for them to close the markets for the entire day.
Paracha appealed to Prime Minister Nawaz Sharif to intervene and address traders' reservations about the withholding tax. He said that bureaucracy was conspiring against the traders and government by creating differences between them. Demonstrating against the government decision of imposing withholding tax, traders in the federal capital Islamabad also observed a complete shutter-down strike with the objective of pressurizing the government to reverse its decision.
Major markets in the capital city like Blue Area, Karachi Company, Aabpara, Supper, Jinnah Market and markets in Markaz of different sectors remained closed with the exception of Kohsar Market. Only medical stores and food outlets remained open in different parts of the city.
Ghulam Nabi, the owner of a shop in Kohsar Market, said that all traders were united against the government decision to tax bank transactions but added that the traders in Kohsar market decided to keep their shops open. He however added that the traders of Kohsar market are considering taking a legal action against the government decision.
Anjuman-e-Tajran Pakistan President Ajmal Baloch while talking to Business Recorder said that over 70,000 traders as well as residents of the federal capital have rejected the government decision of imposing the withholding tax on banking transactions. Asked how long they would continue strike, Baloch stated that traders would go to any extent to protect their rights.
Anwar Khan reports from Karachi: A strike that had to be a unanimous protest by the countrywide traders against what they continued to term 'unjust' withholding tax of 0.3 percent on bank transactions finally ended up on Saturday with a divergent approach undermining their unity. Traders from either bloc - opposing and supporting the August 1 strike in the country especially in the financial hub of Karachi made all out efforts to reject one another's claims on the shutter-down protest failure and success.
Atiq Mir, Chairman, All Karachi Tajir Ittehad called the Saturday's strike as 'the government backed' effort just to weaken the traders unity and scale down business activities in the metropolis. He claimed the August 5 strike would manifest the traders' resentment against the tax.
Jamil Paracha, Chairman, Sindh Tajir Ittehad, on the other hand, called the Saturday's strike a 'greater' success against the controversial withholding tax with over 80 percent markets padlocked across the city and shutter-down in 26 districts of Sindh. He said the strike had collapsed the countrywide trade with no activities.
Mehmood Hamid, President, Karachi Chapter of All Pakistan Organisations of Small Traders and Cottage Industry claimed the city's 70 percent markets remained shut as a part of the nationwide struggle against the withholding tax. He asserted that trade had been at a halt across Sindh.
"They are the traitors and not traders, who opposed the August 1 strike against the withholding tax," Paracha said, adding the closure of 800 markets in the city had showed the traders' unity against the tax and defeated the government's supporters. "The real traders have rejected the strike breakers," he said. To a question, he said that his traders' group would support all calls for the betterment of businessmen community whether it was the August 5 strike. "On August 4, we have a meeting in Islamabad to draw up a future line of action where we will also decide to join the August 5 strike or not," he said.
"A strike of those who have imposed 0.3 percent withholding tax has been rejected and all big shopping centres across the metropolis remained open throughout the day," Atiq Mir told reporters at a news conference held at Karachi Press Club during the day. He thanked the traders for failing the strike called by the government's backed Anjuman-e-Tajiran and called the striking tradesmen as 'self-proclaimed' businessmen representatives. He alleged those who were at the strike had been enjoying the government support to fail the traders efforts to get the tax withdrawn.
He also announced to take out a big rally on August 4 against the bank transaction 'unjust' tax in the city and urged the tradesmen to help get succeed the August 5 strike with overwhelming support to show unity and resentment against the government's taxation move.
Jaama Clothe, M A Jinnah Road, Saddar, Urdu Bazaar, Tyres Markets, Lighthouse Markets, Cycle Market, Bohri Bazaar, Regal Markets, Haideri Markets, Timber Market, Steel Market, Tariq Road Markets, Clifton Markets, Bohra Pir Markets, Liaquatabad Markets, Shopping Centres in Malir, Korangi, Landhi, Drig Colony, Quaidabad, Khokhrapar, Model Colony - Airport, Shah Faisal Colony, Gulbahar, Arambagh, Golimar, Paposh Nagar, Defense and other parts remained closed, he claimed.
"The tax on bank transaction is giving a birth to black economy," Mehmood Hamid warned the government, saying that "Pakistan is on the verge of a falling into economic crisis on the same patterns like Greece." The Saturday's strike, he said, was a clear message to the rulers to scrape their taxation plans. He also thanked to the traders kept their markets closed to support the strike in the city and elsewhere in the country. He termed the August 1 strike 'unity' of traders to thrash the government coercive policies. He also slammed the strike breaker traders and urged them to come closer to the mainstream unity.
Jodia Bazaar, Juna Market, Dates Market, Boulton Market, Mariot Road Market, Jamaa Clothe Market, Aram Bagh Market, Liaquatabad Markets, Electronic Markets, Paper Markets, Quaidabad Markets, Naz Plaza Markets, Timer Market, Steel Market, Medicine Market, Khyber Market, Quettawala Market, Lee Market, Kodi Garden, Denso Hall Markets, and other shopping centers remained shuttered-down, he claimed.
Besides, he said trade and business activities remained shut in different parts of Sindh, Punjab, Islamabad and Khyber Pakhtunkhwa during the strike. He said shuttered-down strike the government should accept as a verdict by the traders against its tax move. The next strike is now due on August 5 on the same issue, but the question whether the traders will regain their unity to press the government for their demand to withdraw the bank transaction tax.
Abdul Qadoos reports from Peshawar: Trading community observed shutter down against the levy of Withholding Tax as all major shopping centres of the provincial metropolis remained closed. On the call of the central leadership of Traders' Alliance important trading centres like Qissa Khwani, Khyber Bazaar, Ashraf Road, Chowk Yadgar, Meena Bazaar, Hashtnagri and Peepal Mandi, currency and jewellers markets remained closed.
However, due to division in trading community, fruit and vegetable markets observed partial strikes. Similarly, All Pakistan Goods Association and Tajir Insaf Group did not participate in the strike. The strike calls was given by Traders' Alliance Pakistan against the levy of Withholding Tax on bank transactions, however, the local trading community of Peshawar also included law & order situation, property tax and raids and heavy penalties by the district administration.
On this occasion, the provincial government had taken strict security measures and heavy contingent of police were deployed to patrol bazaars and prevent unpleasant incident. Meanwhile, after the levy of withholding tax, trading community had temporarily suspended cash transactions through commercial banks and adopting extra-ordinary care in working with banks.
Sources in trading community said that that after the imposition of withholding tax, depositors had withdrawn billions of rupees from the commercial banks and so far banks deposits have been declined by Rs 50 billion. The trading community is now preparing business in cash payment, which could inflict profits of the banking sector.