Wholesale grain markets closed in protest over withholding tax

KARACHI: The wholesale grain market in Karachi remained closed on Wednesday in protest against the imposition of a withholding tax on various commodities in the recently announced federal budget.

The strike, called by the Karachi Wholesale Grocers Association (KWGA), is expected to continue for three days, affecting the supply of essential food items nationwide. Wholesale grain markets in other parts of Sindh as well as in major cities of the country also observed shutdowns, Abdul Rauf Ibrahim, chairperson of the KWGA, told The News.

He said that wholesale grocers closed their shops in Karachi’s following neighbourhoods: Joria Bazar, Dandia Bazar, Kachi Gali, New Chali, Nanank Wara, Liaquatabad, Aligarh Colony, Malir and Water Pump.

He added that besides pulse mills in Hyderabad, wholesale grocers in Sukkur also observed the strike.Rauf said that wholesale grocers in Lahore, Faisalabad, Multan, Rawalpindi, Peshawar and Mardan also remained closed in a strong message against the government’s current taxation measures.

He added that wholesale grocers decided to go on strike after reaching a consensus in a meeting, attended by leaders of wholesale grocer associations across the country. “This was a consensus decision and will decide the future course of action after two days when the strike ends,” adding that protests will only expand if the government does not withdraw its decision on withholding taxes.

When asked about the contact with the federal government and the subsequent progress made about the withdrawal of the withholding tax, Rauf said that the government knows about it; however, nothing has been done so far.Wholesale grocers are observing the strike against the withholding tax on the sale of pulses, sugar, rice, etc.