Nationwide Shutter-Down Strike Observed by Traders

KARACHI – Traders across Pakistan have initiated a nationwide shutter-down strike today (Wednesday) in protest against the government’s recently introduced tax policy, known as the ‘Tajir Dost Scheme.’ The strike, which was called by the All Pakistan Anjuman Tajran (APAT), has gained significant traction as business communities in major cities, including Karachi, Lahore, Rawalpindi, and Islamabad, join forces in opposing the scheme.

The traders have voiced strong objections to the policy, labeling it impractical and unsustainable, particularly for small shopkeepers who are now burdened with heavy taxes. The Tajir Dost Scheme aims to integrate traders into the formal tax structure, a move driven by the government’s commitments to the International Monetary Fund (IMF).

Ajmal Baloch, President of APAT, has taken a firm stance, declaring that no businesses will remain open nationwide until the government addresses their concerns. “We will not engage in any negotiations with the government as their efforts seem nothing more than tactics to suppress our strike,” Baloch stated, emphasizing the unity and resolve of the trader community.

Karachi’s Business Community Rallies Against High Costs

In Karachi, leaders of the Central Traders Association (CTA) and Sindh Traders Alliance (STA) have joined the nationwide protest. Their grievances extend beyond the tax policy to include soaring electricity costs and the ongoing Independent Power Producers (IPP) agreements, which they argue are exacerbating the financial strain on businesses.

The Karachi Chamber of Commerce and Industry (KCCI) has announced its full support for the strike, signaling widespread dissatisfaction among the city’s business community.

Peshawar Traders Demand Economic Relief

In Peshawar, both major and minor trader organizations are participating in the strike, leading to a complete shutdown of commercial activities in the inner city and Cantonment areas. Traders in the region are calling for a reduction in electricity prices and immediate relief from the current economic pressures.

Political support for the strike is also strong in Peshawar, with parties such as the Awami National Party (ANP), Jamaat-e-Islami, and Pakistan Tehreek-e-Insaf (PTI) backing the traders. Rallies have been organized in various districts to protest against the government’s policies, underscoring the widespread unrest.

Understanding the Tajir Dost Scheme

The Federal Board of Revenue (FBR) introduced the Tajir Dost Scheme as part of its broader efforts to bring traders and wholesalers into the formal tax structure. The policy, which began in July under IMF pressure, aims to register millions of retailers and generate significant revenue.

Under the scheme, traders are categorized based on the location of their shops, with corresponding monthly advance tax payments ranging from Rs 5,000 to Rs 60,000. The government had projected to collect Rs 50 billion from this initiative by registering around 3.2 million retailers in the current fiscal year. Despite these ambitions, the scheme has been met with strong resistance from the trader community, who argue that the financial demands are excessive and unmanageable.

Government’s Response

Despite the mounting pressure from the business community, an official from the FBR has stated that the government will not withdraw the Tajir Dost Scheme. However, the official indicated that there might be room for negotiation on reducing the taxes under the scheme.

As the nationwide strike continues, the standoff between traders and the government highlights the broader challenges facing Pakistan’s economy, particularly in balancing revenue generation with the financial realities of small businesses. The outcome of this strike could have significant implications for the country’s economic landscape in the coming months.