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Standoff
between army government and businesses |
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May 30, 2000 ISLAMABAD, MAY 29 (AP) - A standoff between Pakistan's military-led government and businesses continued Monday as merchants launched a two-day strike to protest plans to document their businesses and eventually tax them. The government began a massive countrywide campaign last weekend to document businesses throughout the country.
Thousands
of tax collectors, accompanied by soldiers, began knocking
on the doors of businesses demanding they complete a survey listing their
inventory so they can be assessed and taxed accordingly. Residential properties in Pakistan also will be surveyed and owners registered and required to pay taxes. The campaign has been launched by the government to get Pakistanis to start paying taxes. In Pakistan, a country of 140 million people, barely 1.2 people pay taxes. Army Chief Gen. Pervez Musharraf called it "shameful". But storeowners, who rely almost exclusively on cash payments, which are seldom receipted, say they will resist. "We have been left with no alternative, but to go on strike," said Omar Sailya, head of the Pakistan Traders' Association. Sailya's
group has been seeking talks with Musharraf to have the decision
reversed, but until now the army chief has refused. Most
of the country appeared to be shut down with 80 percent of businesses in Karachi, the country's commercial hub shut down, and as many closed in Lahore, the eastern provincial capital of Punjab. In northern Peshawar, the frontier provincial capital, most of the larger businesses were closed. In eastern Lahore businessmen said they were ready to pay taxes, but wanted some guarantees from the government that the tax structure would be fair and the collection honest.
"We
are not opposed to paying taxes, but it has to be fair and simple,"
said Sheikh Enam Elhai, head of the Lahore Small Businessmen's
Association. "We will go on strike indefinitely if the government does not listen to us." In Pakistan where corruption is endemic tax collectors have a reputation for taking bribes or imposing arbitrary taxes to those who don't pay. In an attempt to curb the corruption the government fired 1,000 tax officials last week and passed a new law allowing for summary dismissal of corrupt officials.
Successive governments have tried and failed to document Pakistan's economy, register businesses and tax payers, in an attempt to increase its revenues. Government bowed to the pressure of prolonged strikes and civil disobedience by businesses. Musharraf says his army-led government won't back down.
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