0.3 percent tax on bank transactions: small traders to go on shutter-down strike on August 5

Small traders on Tuesday announced to go on shutter-down strike on August 5 against imposition of 0.3 percent tax on all bank transactions. It is to be mentioned here that originally 0.6 percent tax was imposed on all bank transactions by non-filers, but later it was brought down to 0.3 percent after successful negotiation with Federal Commerce Minister Ishaq Dar.
However, small traders warned the government of an indefinite strike and a street protest if the tax was not withdrawn altogether. The announcement came in support of a countrywide strike call, which All Pakistan Anjuman-e-Tajiran has given against the tax imposition. The government through a presidential ordinance reduced the legislated tax of 0.6 percent to 0.3 percent on all bank dealings, targeting the non-taxpayers segment of the businesses. Despite reduction in the tax, traders rejected the government move and stuck to their primary call for a complete withdrawal of the tax.
These decisions were taken during an emergency meeting of the Supreme Council of Traders held at All Karachi Tajir Ittehad office in Aram Bagh market. Traders in the meeting demanded of the government to withdraw the ''unjust'' tax immediately and reimbursed all the amounts which banks had already withheld from businessmen transactions. They also demanded of the government to bring the non-taxpayers into taxation net and make the procedures easier to help the non-filers enlist with the tax office.
"The government should stay away from destruction of trade and business and should not incite traders through their policies to turn violent and boycott the taxpaying," Chairman AKTI, Atiq Mir said while presiding over the meeting. He termed the withholding of a tax by banks as ''robbery'', saying that the move would never attract or pull a non-filer to the scanty tax net of the country, rather make the taxpayers abandon taxpaying. "The tax will not even spare the widows, retired officials, and general public. It is unjust," he added.