Traders across major cities in Pakistan observed a shutter-down strike on August 28 in protest against high taxation and inflated electricity bills, as well as the government’s widely publicized tax reforms, including ‘Tajir Dost Scheme’.
The strike was initiated by Naeem-ur-Rehman, the leader of Jamaat-e-Islami Pakistan, and received widespread support from various traders’ unions and associations.
Trader groups strongly criticized the issuance of tax challans amounting to Rs60,000 to small businesses and retailers, arguing that those registered under the scheme were assured they would not have to pay more than Rs1,200 in taxes.
The primary goal of the strike was to pressure the government into reversing recent hikes in power bills and the controversial tax implemented following recent negotiations with the IMF, which has urged Pakistan to expand its tax base.
While most public markets across Pakistan remained closed, pharmacies and grocery stores selling essential food items stayed open. Kashif Chaudhry, one of the strike leaders, explained that these stores were kept open to avoid inconveniencing the general public.
Shops were closed in Islamabad, Rawalpindi, Lahore, and Karachi, while traders in the northwestern Khyber Pakhtunkhwa and southwestern Balochistan provinces observed a partial strike, with some stores open and others closed.
In a statement issued on August 28, the Pakistan Oil Tankers’ Association expressed its full support for the strike called by the traders’ community and Jamaat-e-Islami. Other opposition parties, including Jamiat Ulema-i-Islam-Fazl and the Awami National Party, also voiced their support for the protesting traders.
Earlier this month, the traders’ community, including Markazi Tanzeem-i-Tajran Pakistan and All Pakistan Anjuman-i-Tajran, announced the nationwide strike in response to the Tajir Dost Scheme, heavy taxation, and inflated electricity bills.
The Federal Board of Revenue (FBR) introduced the Tajir Dost Scheme in March to bring traders and wholesalers into the formal tax system as required by the IMF. This move has raised concerns among traders.
The expansion of Pakistan’s tax base now presents a significant challenge for the ruling PML-N and its coalition partner, the PPP, as many protesting traders have political ties with these parties.