Traders warn of strike over taxes, power bills

KARACHI: The Karachi Wholesale Grocers Association rejected a new withholding tax on pulses and rice on Thursday and threatened to strike if the Federal Board of Revenue (FBR) does not hold a meeting to resolve this issue.

“Traders associated with the grains market give five days to the government abolish the newly introduced withholding tax,” Chairperson of the Karachi Wholesale Grocers Association Abdul Rauf Ibrahim announced at a press conference that followed a Zoom meeting of traders from across the country.

He said that traders have decided to jointly launch their struggle against the withholding tax and that the final course of action will be taken on July 30. Rauf said that the new tax would increase prices for consumers by Rs10-15 per kilogramme, warning of legal action if the demand is not met.

He said that the government should pay attention to the demands of traders and questioned whether it would act when traders, like petroleum dealers and flour mills, go on strike.Separately, traders in Karachi announced the closure of markets to register their protest against inflated electricity bills.

Faheem Noori from the All Sadr Alliance of Market and Mall Association said at a press conference on Thursday that markets will be closed from 12pm to 3pm as a form of protest. If the situation does not improve, the traders plan to escalate their protests after a week to include demonstrations outside markets, he added.

He said that traders will hold a meeting on Friday to discuss further actions regarding high electricity tariffs, adding that the current electricity rates make it impossible to run a business. “The government should reduce the electricity tariff, as traders are going through financial pressure.”