Wholesale grocers launch strike against new taxes introduced in budget

KARACHI: Wholesale grocers have launched a strike against the new withholding taxes introduced in the budget, leading to market closures nationwide. The protest, which began on July 31, has affected markets in Punjab, including Faisalabad, as well as in Karachi, Hyderabad, and Sukkur in Sindh. In Khyber Pakhtunkhwa, markets in Peshawar, Mardan, and Kohat are also closed.

Rauf Ibrahim, Chairman of the Wholesale Grocers Association, stated that the strike will last until August 2. If their demands are not met, a further plan of action will be announced on August 6, with Ibrahim warning that the protest will escalate until the taxes are reduced.

Earlier, Karachi traders had planned street protests against rising electricity costs and unfavorable tax schemes. Atiq Mir, Chairman of the All Karachi Traders Union, expressed support for the protests on July 30, describing the nation’s economic situation as “dire and alarming” and the worst crisis in history.

Mir criticized the government’s handling of inflation and economic issues, alleging that investors are moving abroad and the wealthy are seizing control. He condemned the government’s “trader-friendly tax scheme” as unrealistic and ineffective, noting the collapse of 90% of businesses, the layoffs of over 40% of employees, and a lack of new job opportunities. He reported a 70% decline in industry and commerce over the past three years.

Mir also highlighted significant financial losses and a severe situation for traders, industrialists, and investors. He called for a review of the unrealistic budget, a reduction in government perks, and the declaration of an economic emergency to prevent further damage to Karachi’s trade and the broader economy. Mir accused the government of being insensitive and a tool of the IMF, warning of impending anarchy, chaos, and rebellion if the situation is not addressed.