KARACHI: Goods transporters have strongly rejected the federal budget following the hike in the withholding tax rate on the services sector, expressing deep dissatisfaction with the move. They have warned the government that a nationwide wheel-jam strike could be launched if their concerns are not addressed promptly.

An emergency meeting of goods transporters was held in Karachi, with representatives from transport associations across the country participating via Zoom. During the meeting, it was unanimously decided that a delegation would meet with the finance minister and Federal Board of Revenue (FBR) officials to convey the serious challenges resulting from the increased tax burden.

Speaking at the meeting, transport leader Imdad Naqvi said: “We are already paying 4.0 per cent withholding tax, which is a significant burden on the transport community. Now the government has raised it by another 2.0 per cent in the budget, taking it to 6.0 per cent — which is simply unbearable.” He warned that if the government does not withdraw the recent increase, the transport sector would be compelled to go on a wheel-jam strike. Such a move, he stressed, would not only harm the economy but also disrupt the nationwide supply of essential food items.

Transporters added that, during this period of economic hardship, they cannot absorb any further tax increases and urged the government to reconsider its decision. Failure to do so, they cautioned, could lead to a serious escalation of the crisis.