Karachi traders observe strike against new tax laws

KARACHI: Traders and the business community in Karachi observed a complete shutdown on Saturday in protest against what they called controversial provisions in the Finance Bill and new sales tax regulations.

All major and minor commercial centres across the city remained closed in response to a strike call issued by various traders’ unions.

Protesters demanded the withdrawal of what they described as “draconian” tax clauses, while reaffirming their willingness to pay fair and transparent taxes.

Karachi Chamber of Commerce and Industry (KCCI) President Javed Balwani warned that protests will be expanded if the issues remain unresolved, seeking the government’s written assurances on the matter.

The KCCI president said that no written commitments have been received despite government talks, warning of a second strike if the next meeting yields no progress.

“The chamber may extend the strike to one or two additional days next week, with a potential full-week shutdown if demands are unmet,” he said and added that the strike will remain peaceful.

The business community opposed Sections 37A and 37B of the Finance Act, which they say, grant the Federal Board of Revenue (FBR) ‘arbitrary’ arrest powers.

They also objected to Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40.