Traders to observe strike against tax on bank transactions

Small traders of more than 800 markets of Karachi will not only observe strike but to stage a protest car rally to pressurize government for withdrawal of withholding tax of 0.3 percent on the cash transaction above Rs50,000. According to traders, a majority of the traders have already decreased the dealing with the banks, but they will retain very mandatory transactions in future if the taxes are not withdrawn by the government. Banks branches situated in and adjacent of markets have witnessed a continuous drop in their cash flows because of the fact traders are avoiding using banking channels for their business, they said. The dealings have been started off in cash with beefed up security whereas Parchi system has been introduced in several market by the traders with the use of communication means such as mobile phone or internet.