Traders end countrywide strike after reaching agreement with govt – Business

The business community suspended the country's closing strike on Wednesday after reaching an eleven-point agreement with the government.

The strike, which began on Tuesday, was carried out against taxation and presented a copy of the CNIC to buy and sell products of up to Rs 50,000.

The advisor to the Prime Minister of Finance, Dr. Abdul Hafeez Sheikh, flanked by the president of the Federal Revenue Board (FBR), Shabbar Zaidi, and the unconditional PTI Jahangir Tareen, announced the agreement at a press conference in Islamabad.

Under the agreement, the status of a national computerized identity card (CNIC) for the purchase of Rs50,000 will remain intact, but any action against its violation has been suspended until January 31, 2020.

The two parties agreed that merchants with an annual turnover of Rs100 million would have to pay Rs0.5 percent of the turnover instead of 1.5pc of the turnover and that the merchants themselves would not become withholding agents.

The limit of the electricity bill for registration in the sales tax register was increased to Rs1.2 million from Rs600,000.

Under the agreement, the government also agreed to review the turnover rate for sectors with low profit rates. The review in this regard will be carried out in consultation with a committee of traders. The two sides also agreed to solve the jewelers' problems on a priority basis and in consultation with their associations.

The withholding tax on the renewal of the broker's license will also be reviewed.

The adviser also announced that, according to the agreement, the government will establish an exclusive cell in FBR, Islamabad, to resolve merchants' problems immediately. The head of the cell will be a 21 or 22 grade officer who will maintain contact with the merchants monthly.

The two sides also agreed that the government would introduce simple Urdu language forms for registering new merchants and filing tax returns, while merchant agencies will offer full cooperation in registering new businesses.

Under the agreement, the government will consult with the merchants committee for the decision to grant exemption in sales tax to a 1,000-square-foot store. Similarly, the government will take merchants on board to make a decision on the inclusion of those retailers who also engage in wholesale business in the sales tax registry.