FAISALABAD, March 26: Yarn traders observed a shutter-down strike on Saturday against the imposition of sales tax and flood surcharge and set up a protest camp at the main chowk of the yarn market.

Faisalabad is considered the textile capital of Pakistan and the yarn market is the biggest source of providing yarn to the weaving mills and the powerloom sector.

The yarn market wore a deserted look as the traders stayed away from their business activities by pulling their shutters down. Only a few traders did their business with half shutters down.

The market will also remain closed on Sunday (today).

On the other hand, the sizing industry owners also suspended their business activities on the seventh consecutive day on Saturday and set up a protest camp at the Clock Tower intersection creating problems for motorists. Traffic police also erected barriers restricting motorists from entering Karkhana Bazaar, Montgomery and Jhang Bazaar.

Different textile associations had threatened on March 22 to suspend their business activities after one week if the government did not withdraw its notification regarding imposition of sales tax and flood surcharge.

The decision was taken at a meeting held at the Faisalabad Chamber of Commerce and Industry.

Talking to newsmen, yarn traders and sizing industry owners said the government should expand tax net rather than to overburden the taxpayers.

They said the government should take all stakeholders into confidence before taking the decision of imposing any new tax.

They said the sales tax would push the crisis-stricken textile sector towards a disaster and a large number of labourers would become jobless.

They urged the government to take cognizance of the situation and withdraw the notification regarding taxes.