Traders end strike after successful negotiation with government

• Condition of presenting a CNIC copy for buying and selling of goods up to Rs50,000 has been delayed for up to three months.
• Traders would now pay 0.5pc tax on the annual turnover of up to Rs 100mn instead of previous rate of 1.5pc.

Traders have called off their strike after successful talks with Advisor to Prime Minister Hafeez Shiekh on Wednesday.

As per reports, negotiations between the government and businessmen were successful in terms of sales tax enforcement and ID cards. All Pakistan Association of Traders president Ajmal Baloch confirmed the negotiations between the government and the traders, saying that the condition of presenting a CNIC copy for buying and selling of goods up to Rs50,000 has been delayed for up to three months.

He said that the traders would now pay 0.5pc tax on the annual turnover of up to Rs 100 million instead of previous rate of 1.5pc. Meanwhile, the traders with annual turnover of up to Rs100 million will be excluded from the list of the withholding agents.

Apart from this, the annual electricity bill for sales tax registration has been increased from Rs 600,000 to Rs1.2million. Whereas, the turnover tax for low-profit sectors will be re-assessed.

On Tuesday, the traders/business community observed a shutter-down strike against the government's decisions regarding registration of traders with the sales tax department, fixed income tax scheme and condition of computerized national identity cards (CNIC) number of unregistered buyers.

Traders have announced countrywide shutter-down strike on October 29-30 after a two-day strike call given by All Pakistan Traders Association (APTA).

The charter of demands for the two day strike included:

• The abolition of the condition to submit CNIC
• Restoration of the 1.2 million rupees income limit for income tax
• Announcement of fixed tax scheme for traders
• Stoppage of actions by Pakistan Telecommunication Authority for the registration of mobile phones
• Restoration of the old property tax system
• Stoppage of the imposition of penalties by different institutions and the collection of professional tax from professionals and organizations
• Reduction in trade tax