By Staff Reporter
ISLAMABAD: Traders staged a nationwide strike on Wednesday, shutting down markets and businesses in 42 cities, as they pushed back against the government’s new tax regime, which they say will hike levies and exacerbate economic hardship.
The protest, backed by opposition parties and trade groups, comes as the government struggles to implement reforms tied to a $7 billion IMF bailout, including tax hikes and utility price increases that have sparked widespread discontent.
The Federal Board of Revenue (FBR) has assured traders it is willing to amend the “Tajir Dost Scheme”, including reducing tax rates, but emphasized that the scheme will be implemented at any cost.
FBR chairman Rashid Mahmood said the board is willing to address “legitimate issues” raised by traders and also hinted at setting up a market-level review mechanism to ensure fair tax rates.
Mahmood emphasized that the scheme will not be withdrawn, despite the strike.
Traders announced a nationwide shutter-down strike against “hefty taxes” imposed on retailers through the voluntary tax compliance program under which businesses can declare their assets and incomes and potentially receive benefits like reduced tax rates and simplified tax compliance procedures.
Tough measures that are part of a 37-month IMF bailout deal signed last month, such as raising taxes, and electricity and gas prices, have faced substantial resistance from opposition political parties and trade and industry groups.
The FBR has said it will implement the scheme at any cost. “The scheme will not be withdrawn,” said Naeem Mir, Chief Coordinator of the Tajir Dost Scheme. “However, the FBR has agreed to amend the scheme as per recommendations of the traders.”
Mir said the FBR would allow traders’ committees to voluntarily decide about exemptions, rates, and payment of fixed tax in markets and shops based on their businesses and the size of shops.
But traders say this is not enough. “The rulers have imposed taxes on food items and increased electricity tariffs, leading to suicides over high bills,” said Ajmal Baloch, President of All Pakistan Anjuman-i-Tajran. “Instead of easing the burden, they have exacerbated the crisis. The ruling class has not curtailed its luxuries but instead increased our hardships.”
“The FBR is trying to oppress us with this scheme,” said Kashif Chaudhary, leader of the Central Traders Association. “We reject the so-called trader-friendly scheme as it is unworkable. The FBR was repeatedly trying to consult with me, but we have made it clear to the authorities that we reject the scheme.”
Chaudhary said talks with the FBR had failed over the past seven weeks and that the strike aimed to safeguard the economy and prevent industry closures. “The protest is not just a leadership issue but a matter of business survival,” he emphasized.
The strike has been called in 42 cities across Pakistan, including Karachi, Lahore, and Islamabad.
Traders are protesting against the recently notified tax rates, which took effect in August, and the expansion of the country’s tax base. They demand the withdrawal of the scheme and reduction of high electricity bills and other taxes.
The government’s tax reform efforts are likely to face substantial resistance, with the strike posing a challenge to the ruling PML-N and its coalition partner, the PPP.
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