Traders pull down shutters across Pakistan against WHT

[Dubious]

• FPCCI president says body is trying to resolve issue between govt and traders
• Says it’s in traders’ own interest to come under the tax net, contribute to national economy

Traders in major cities of all four provinces observed shutter-down strike on Saturday against the withholding tax on bank transactions.

Despite differences among different trader organisations over the schedule of strike, traders in major cities across the country kept their shops, markets and trade centres closed to record their protest against 0.3 per cent withholding tax.

Another national group of traders would hold a shutter-down protest on August 5.

Markets in various cities of the country, including Islamabad, Lahore, Faisalabad, Peshawar, Karachi, Rawalpindi, Hasan Abdal, Chakwal, Faisalabad, Kasur, Gujrat, Gujranwala, Burewala, Chiniot, Sialkot, Hyderabad, Sukkur, Larkana, Mirpur Khas, Jacobabad, Jacobabad, Nawab Shah, Badin, Matli, Tando Allahyar, Haripur, Abbottabad, Mansehra remained closed.

Protests were also held in more than a dozen of cities in support of the traders’ demand for complete abolition of the tax. They said that businesses were already suffering due to various government policies and instead of resolving the issues already facing businessmen, the government was adding more taxes to their woes. Some trade groups even went to the extent of saying no to any future negotiations with the government, saying they would expect nothing less than a complete withdrawal of the tax.

Citizens in the affected cities were directly affected by the strike. Many people Pakistan Today spoke to have urged the government and authorities concerned to hold dialogue with the traders and resolve their issues so that routine life is not paralyzed by the standoff between the two sides.

Talking to Pakistan Today, Federation of Chamber of Commerce and Industry (FPCCI) President Mian Mohammad Adress said that his organisation was trying to bridge the differences between the traders and government over the deduction of withholding tax (WHT) on cash withdrawals.

He said the government and traders are using pressure tactics against each other to resolve the issue. The traders could have postponed the strike for one month to resolve the issue as the talks were still going on.

“On our (FPCCI) intervention, the government is ready to facilitate the traders provided they get registered as taxpayers by obtaining National Tax Number.” He said the government has formed three committees to resolve the issue and was hopeful some amicable agreement would be possible within the next few days. “Traders must realise that no-where in the world businessmen could operate outside the tax net, they will have to join the tax net for their progress as well as of the country,” he said.

“If a person earning Rs 50,000 per month pays income tax then why a trader who earns Rs 5,000 to Rs 10,000 per day cannot pay taxes?”

He said the government is ready to facilitate traders who voluntarily come under the tax net therefore they should take benefit from it. “By obtaining NTN in one day the traders can avoid WHT from the next business day. If the number of taxpayers’ increases then the ratio of the taxes could be reduced,” he added.

President Rawalpindi Chamber of Commerce and Industry Syed Asad Mashadi said the traders have some genuine concerns over WHT. The turnover registration is a major concern for traders and it could be also settled through negotiations. The chambers are trying to bridge the issue through negotiations between traders and FBR, he said.

He said the income tax and sales tax committees set up by the FBR having trade representatives will come up with solutions to address the issue. The committees are likely to present their reports by August 13 while the government has assured legislation within next 15 days. Finance Minister Ishaq Dar has assured that the recommendations of the committees will be implemented forthwith through a presidential ordinance to facilitate the traders.


Traders pull down shutters across Pakistan against WHT | Pakistan Today


Economical progress!! Bring the poor and below average under the tax net but dont ever touch the ever rich land lord and family friends


Wonder when he will apply this line for his businesses :

no-where in the world businessmen could operate outside the tax net,

 

[Donatello]

Let's see how long they can keep the shutters closed on their own income.....

 

[Bouncer]

Let's see how long they can keep the shutters closed on their own income.....

Or lets see how long can PMLN keep on working against its corrupt voter base?

Off topic: If you look at the picture in this article, you will notice two things; 1) how beautiful the architecture is (look at the balcony and the minaret in background) 2) and how ugly the overall picture is made by trash and dirty unkept road.

 

[Rizwan231]

Nice information

 

[AZADPAKISTAN2009]

Look how filthy the road is these traders do not clean their shop or regions infront of their trade office , charge a TAX fro cleaning their shiat

 

[RazorMC]

There's nothing wrong with taxes as long as they are not used to fill their own pockets.
PML-N should also seek to encourage transparency in tax-collection to reduce the prevailing corruption.

 

[Faiez]

The problem is not the withholding tax itself, it's that they'll have to start filing tax returns and tax rates are just too high......and once you file a tax return, there's no going back.....

Also, this withholding tax will raise operating capital requirements. Especially retailers/distributors who have large volume, low margin goods to sale, they could be in alot of trouble....

 

[Zibago]

Hun bano na shair

 

[A.M.]

People in Pakistan should be the last ones to complain about paying taxes. Our Tax collection rate ranks among the lowest around the world. I hope the government gives a danda to these traders.

Below are some facts for you to consider:

Pakistan's tax system

• Pakistan has one of the lowest tax-to-GDP ratios in the world, similar to countries like Ethiopia and Afghanistan
• Tax evasion is rampant among traders, businessmen and politicians
• In a country of 180 million, fewer than 800,000 people paid their taxes last year (2013)
  
• Pakistan's tax system is largely dependent on indirect taxes, often referred to as regressive taxes, such as sales tax, excise duty and customs duty
• Direct taxes comprise primarily income tax

@Akheilos you don't need to bold and underline the entire article.

 

[Dubious]

@Akheilos you don't need to bold and underline the entire article

Emphasis! It is the shittiest dept in the whole country.....TAX it increases tax for those paying "sharafat say" and ignores those avoiding it!

 

[AZADPAKISTAN2009]

If they introduce the punishment of "100 Lashes" against Tax evasion people will pay surely

 

[Dubious]

If they introduce the punishment of "100 Lashes" against Tax evasion people will pay surely

or get JC to side them (rich elite who dont pay)

or just eat lashes and complain (crooks of other class)....

 

[RoadRunner401]

Traders Union, wtf is that. Private business are in a union against what?

 

[AZADPAKISTAN2009]

Treason against the state

 

[ArsalanKhan21]

They said that businesses were already suffering due to various government policies and instead of resolving the issues already facing businessmen

They say death and taxes are the only things that are inevitable. Government needs money to pay for the 6 submarines and other defense purchases.

Look how filthy the road is these traders do not clean their shop or regions infront of their trade office

The private cleanliness amid public filth is the rule in Pakistan when people throw their garbage on streets.