LCCI, other chambers announce nationwide strike on July 19 against punitive taxes

The Lahore Chamber of Commerce and Industry (LCCI) has declared a nationwide strike on July 19 to protest against Section 37AA of the Income Tax Ordinance, punitive taxes on bank transactions, and Punjab’s proposed labor policy, which it claims are detrimental to businesses. 

The LCCI has received assurances of full support from other chambers of commerce, including the Karachi Chamber of Commerce.

LCCI President Mian Abuzar Shad made the announcement during a press conference, which was attended by representatives of trade and industrial associations. Shad warned that the new measures would severely harm businesses, increase unemployment, and undermine investor confidence. 

He criticized the extraordinary powers given to Federal Board of Revenue (FBR) officials and condemned decisions made without consulting the business community. The LCCI demanded an immediate reversal of these policies to prevent further economic victimization of businesses.

Shad emphasized that the issue at hand was not limited to an individual or a single city, but one that affects millions of livelihoods across the country. He questioned the fairness of taxing bank transactions as low as Rs200,000 and called the provisions “irrational and unacceptable.”

He also pointed out that 21 multinational companies had already ceased operations in Pakistan due to the challenging business environment. Additionally, Shad criticized the payment of over Rs1 trillion to independent power producers (IPPs) without any electricity production, describing it as an unjust decision against industrialists, who play a vital role in the national economy.

The LCCI president raised concerns about Section 37AA, which grants FBR officers unprecedented powers, including the authority to arrest traders, a move he called alarming.

LCCI Senior Vice President Engineer Khalid Usman warned that the government’s actions were pushing businesses beyond their limits, threatening to lead to widespread closures and resulting in mass unemployment. He affirmed that chambers from across Pakistan, including Karachi, were fully aligned with LCCI’s stance.

LCCI Executive Committee member Khurram Lodhi called for an audit of bureaucrats’ salaries and assets, questioning whether they matched their official income and whether they were justified in making decisions that severely impact the business community.