The traders’ community in Pakistan has announced a nationwide strike on August 28, 2024, in protest against heavy taxation, inflated electricity bills, and the Federal Board of Revenue’s (FBR) controversial ‘Tajir Dost Scheme.’
The decision was made during a press conference held at the National Press Club, where prominent leaders of the trade community voiced their concerns and demands to the government.
Call for a Nationwide Shutterdown
During the press conference, President of Markazi Tanzeem-i-Tajran Pakistan Mohammad Kashif Chaudhry, along with President of All Pakistan Anjuman-i-Tajran Ajmal Baloch, declared that traders across the country would observe a complete shutterdown on August 28.
The strike is seen as a significant move by the traders to express their dissatisfaction with the current economic policies, particularly those that they believe are detrimental to their businesses.
Chaudhry and Baloch emphasized the unity within the traders’ community, stating that the strike would be nationwide, affecting all major markets and business centers.
The leaders highlighted that this decision was not made lightly but was a necessary response to what they termed as “unjust” policies imposed by the government.
Rejection of the ‘Tajir Dost Scheme’
A key point of contention for the traders is the FBR’s ‘Tajir Dost Scheme,’ introduced a few months ago with the aim of bringing traders and wholesalers into the formal tax structure, in compliance with the requirements of the International Monetary Fund (IMF).
The traders have vehemently rejected this scheme, urging the government to withdraw it immediately.
“We reject this scheme,” the leaders declared, underscoring their belief that the scheme would impose additional financial burdens on traders, many of whom are already struggling due to the country’s economic downturn. The traders argued that the scheme fails to address the practical realities of small businesses and instead, adds to their financial woes.
In addition to rejecting the ‘Tajir Dost Scheme,’ the traders called for the government to abolish the withholding tax on eatable items, which they argue further inflates the cost of essential goods for both consumers and businesses. The leaders stressed that such taxes are counterproductive in a country where the cost of living is rapidly rising.
Demands for Relief in Electricity Tariffs and Taxation
Another major issue highlighted by the traders during the press conference was the inflated electricity bills that have become a significant burden for both businesses and households across the country.
The traders demanded that the government reduce the electricity tariff and eliminate the slab system, which they claim is causing consumers to pay exorbitant bills that are no longer affordable.
The leaders also called for the withdrawal of the recent increase in income tax slabs for salaried persons and businessmen. They argued that the rising tax burden is stifling economic activity and is particularly harsh on small and medium-sized enterprises (SMEs), which are the backbone of the country’s economy.
Moreover, the traders demanded that the government revisit its agreements with Independent Power Producers (IPPs), arguing that the current arrangements are forcing the public to pay inflated electricity bills. The traders claimed that these agreements are outdated and do not reflect the current economic conditions, making it imperative for the government to renegotiate them in favor of the public.
The press conference also saw the traders calling for the withdrawal of Statutory Regulatory Orders (SROs) 236G and 236H. Section 236G refers to advance tax on sales to distributors, dealers, and wholesalers, while Section 236H applies to advance tax on sales to retailers, as per the Income Tax Ordinance, 2001. The traders argued that these SROs place an undue financial burden on the trading community and should be abolished immediately.
Criticism of Government Officials’ Luxuries
In a broader critique of the government’s handling of the country’s economic crisis, the traders pointed out the perceived hypocrisy of government officials enjoying taxpayer-funded luxuries while ordinary citizens and traders struggle to make ends meet.
They suggested that high-ranking officials, including the prime minister, president, and cabinet members, should forego luxuries such as expensive cars and instead use modest vehicles like the Cultus car, which is more in line with the economic realities facing the nation.
The traders argued that such a move would not only set an example of austerity but also show solidarity with the millions of Pakistanis who are bearing the brunt of the economic crisis. They contended that there is no justification for the continued use of government-funded perks when the country is in such dire straits.
As the August 28 strike date approaches, the traders’ community has made it clear that their grievances are deep-rooted and that they expect the government to take immediate and meaningful action. The nationwide shutterdown is expected to be a powerful demonstration of the traders’ dissatisfaction with current economic policies, particularly those related to taxation and electricity tariffs. The ball is now in the government’s court to address these concerns before the strike further exacerbates the already fragile economic situation in the country.