Traders in Jodia Bazaar, Karachi’s largest wholesale market for commodities, have issued a strong warning to the government against implementing a new withholding tax (WHT). They have threatened to cease imports of pulses and other essential items if the tax is imposed.
Key Points:
- Protest Against WHT and Electricity Tariffs: Traders are protesting against the recent increase in WHT on pulses and commodities, as well as the rise in electricity tariffs.
- Impact on Essential Items: Pulses and rice are considered staple items, and the additional tax burden could lead to higher prices for consumers.
- Call for Government Intervention: Traders are urging the government to reconsider the imposition of the WHT and intervene to address the rising costs.
- Threat of Import Halt: Traders have threatened to stop importing pulses if the tax is not withdrawn, which could lead to supply chain disruptions and price increases.
- Current Supply Situation: The wholesale market currently has only a one-month supply of pulses, and many traders have already halted imports.
Concerns Raised by Traders:
- Unjustified Tax Burden: Traders argue that the WHT on pulses and commodities is unjustified, especially for those who already pay an annual fixed tax.
- Rising Business Costs: Increased electricity tariffs have further burdened traders, leading to higher operational costs.
- Impact on Consumers: The tax burden could ultimately be passed on to consumers, resulting in higher prices for essential goods.
Potential Consequences:
- Supply Chain Disruptions: A halt in imports could disrupt the supply chain for pulses and other commodities, leading to shortages and price increases.
- Economic Impact: The closure of Jodia Bazaar could have a significant economic impact on Karachi and the country as a whole.
The government will need to carefully consider the potential consequences of implementing the new withholding tax and take appropriate action to address the concerns raised by traders.
