Pakistan: Oghi traders warn of strike amid excise tax imposition
Nov 11, 2024
Khyber Pakhtunkhwa [Pakistan], November 11 : Traders in Oghi, Khyber Pakhtunkhwa, have warned the government of an indefinite strike if they are compelled to pay the newly imposed excise tax.
The excise department's enforcement of new excise tax has sparked outrage within the local business community, which is already struggling due to the economic downturn, Dawn reported.
Attaullah Tanoli, president of Awan-i-Tajart, Oghi, voiced the frustration of local traders, saying, "The business community has already been going through a difficult period due to the imposition of direct and indirect taxes. Under such unfavourable conditions, we are unable to pay an additional levy imposed by the excise department."
He emphasised that the rising inflation in Pakistan has significantly reduced people's purchasing power, further impacting their sales.
"Our sales are declining as rising prices and inflation have eroded the people's purchasing power. Instead of offering relief to the business community, the Khyber Pakhtunkhwa government has imposed more taxes on traders," Tanoli added.
Abdul Razzaq, vice-president of Awan-i-Tajart, Oghi, echoed Tanoli's concerns, pointing out that traders are already burdened by high electricity tariffs and multiple taxes, reported Dawn.
He lamented, "We cannot even cover the household and educational expenses of our children. How we can pay additional taxes that are imposed every month?"
Atif Qayyum, district excise and taxation officer, explained that the excise tax was applied under the Urban Immovable Property Tax Act of 1958, with the department gradually extending it to regions previously excluded.
He justified the move, saying, "We have to assess and evaluate an area in terms of its business, worth, and nature before imposing and collecting the excise tax." Qayyum further noted that the tax was intended to support regional development and prosperity, Dawn reported.
However, the traders remain resolute, threatening to stage a protest unless the government revokes the tax imposition.
