Markets shut across the country

ISLAMABAD: Markets have shut across the country due to the traders nationwide shutter-down strike today (Wednesday) in protest against the government’s tax policy ‘Tajir Dost Scheme’.

All Pakistan Anjuman Tajran (APAT) has given the call for the complete shutter down strike across the country.

Businessmen of the major cities including Karachi, Lahore, Rawalpindi and Islamabad have announced a strike against the government’s ‘Tajir Dost Scheme’. They rejected the scheme, calling it impractical as the shopkeepers could not pay heavy taxes.

An official of the FBR informed that the government would not withdraw the scheme due to the pressure of business community. He further said that the government could negotiate on reducing taxes under the scheme.

Ajmal Baloch, the president of APAT, stated that traders will close all businesses nationwide to protest against these taxes. He said no talks will be held with the government labeling the efforts as mere tactics to halt the strike.

RAWALPINDI

A complete strike is being observed in Rawalpindi. Main markets such as commercial market and Saddar is completely closed.

Besides shops, the hotels and nan bais association are also observing a complete strike.

Due to the closure of hotels and tandoors, the people are facing many problems.

KARACHI

The traders’ strike has brought business activities to a standstill in major markets, with shops closed and streets empty. In Karachi, markets such as Liaquatabad, Jodia Bazaar, Light House, Bolton Market, and Tariq Road are shut down, with banners protesting the IMF’s grip, rising power bills, and the government’s policies displayed prominently. Lahore’s major markets, including Anarkali, Nolakha Landa Bazaar, and Hall Road, have also joined the strike.

However, the Karachi Transport Ittehad (KTI) did not join the strike, citing a lack of consultation. Similarly, a traders group in Lahore, the Anjuman Tajran Naeem Mir Group, has opposed the strike and kept their markets open.

The Karachi Chamber of Commerce and Industry (KCCI) has announced its full support for the strike.

PESHAWAR

All major and minor traders’ organizations in Peshawar are participating in the strike, leading to the closure of commercial hubs both in the inner city and Cantonment areas.

Traders in Peshawar are demanding a reduction in electricity prices, citing the need for relief in the current economic climate. They are also calling for the rectification of the deteriorating economic system.

In support of the strike, the Awami National Party (ANP), Jamaat-e-Islami, and Pakistan Tehreek-e-Insaf (PTI) have announced their backing. Traders have also planned rallies in various districts, where they will protest against the government’s policies.

WHAT IS TAJIR DOST SCHEME

The Federal Board of Revenue (FBR) had announced its Tajir Dost Scheme, aiming to bring traders and wholesalers into the formal tax structure as required by the IMF. The IMF has urged the FBR to implement the tax structure for retailers starting in July. The FBR has so far registered over 58,000 small traders/new shopkeepers under the scheme. The government had projected to collect Rs50 billion from the scheme by registering around 3.2 million retailers in the current fiscal year.

Based on the location of shops, the FBR has issued market/area wise indicative income, indicative income tax and Monthly Advance Tax to be paid by small traders. Under the monthly tax payment plan, the traders and shopkeepers in 78 percent of the areas/markets would be required to pay monthly advance income tax of Rs 5,000. The monthly tax payment would be Rs 10,000 per month for traders covered in 14 percent markets of the country. The tax payment would be Rs 20,000 per month in 5 percent areas. Traders would pay Rs 30,000 per month as tax instalment in 2 percent areas and Rs 45,000 monthly payment in 0.6 percent areas and traders would pay monthly advance income tax of Rs 60,000 per month in 0.40 percent markets of the country.

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