Yarn markets and all business and trade centres and commercial Malls will observe complete shutter down strike today in city in protest against the 0.6pc withholding tax on bank transactions. This was stated by Pakistan Yarn Merchants Association's Central Chairman Qaisar Shamas Guccha, Zonal Chairman Muhammad Akram Pasha and Zonal Vice Chairman Adnan Zahid Butt briefing the newsmen here on Monday.
Levy of withholding tax on bank transactions would prove counter productive as the non-filers would resort to cash business and black money market will grow, they apprehended. Further more, the business turnover and volume of trade will be restricted, negatively impacting the economic activity and national economy, they added. They also pointed out that the industrial sector will also suffer as the suppliers would demand cash payments thereby defeating the documentation objective.
They said the government had already levied myriad of taxes and enhancing the rate of withholding tax would break the back of business and trade. They pointed out that with increase in cash transactions the sales tax revenue would also be negatively affected as the business transaction would not be recorded and people will find it convenient to evade sales tax as well as income tax. The government revenue would decrease and economy would suffer. The Associations leaders urged the government to immediately withdraw the 0.6 percent withholding tax on banking transactions and help restore normal business activity in the country for growth and progress of economy.
Meanwhile Anjuman e Tajran City and its all faction, Grey Cloth Association Mandar Gali Market Supreme Council Anjuman-e-Tajran City Faisalabad, Gole Karyana, Gole Cloth Anjuman e Artian, Old Spare Parts Association, Pharmaceutical Association, Railway Road Association, Kabar Market, Tata Bazaar, and Grain Market Association have also announce to observe complete strike on Tuesday. District Bar Association Faisalabad also announce to join the traders strike against the 0.6 percent withholding tax on banking transactions and Secretary DBA Rana Kashif Sultan Khan said lawyers will not appear to courts and banking courts as a mark of protest.