Pakistan unbowed by tax protest

Traders are opposed to a new sales tax

Pakistan's military government has vowed to press ahead with a general sales tax - despite a nationwide strike against the plan.

We have the moral high ground and will allow no compromise on the issue

Interior Minister Moinuddin Haider

Interior Minister Moinuddin Haider said that the government had every right to ask the traders to pay the tax.

"We have the moral high ground," he said, "and will allow no compromise on the issue."

Reports from across Pakistan indicate that the first day of the three-day strike has been widely observed in major cities, closing down virtually every shop.

Troops were out on the streets of Karachi

The government says that since only 1.5 million Pakistanis pay any tax at all, it must widen the tax base.

The traders are consequently being asked to document their businesses and start contributing to the government's revenue.

But the traders argue that hiring accountants to keep their books will cost them too much.

The issue is seen as a crucial test of the government's political will.

General Musharraf has already climbed down on his proposal to change the way in which the blasphemy law works.

Karachi violence

Troops have also been deployed on the streets of Karachi, where there is continued disruption following Thursday's killing of a well-known Sunni cleric, Mohamed Ludhianvi.

He died when unidentified gunmen opened fire on his car.

On Thursday night, a building housing a bank and newspaper office was burned down.

Two people died in the fire.

The overnight situation in Karachi became sufficiently tense for the local army commander, General Usmani, to tour the city.

He said he was posting troops at sensitive points to help the police maintain order.

Paramilitary units have now fanned out across the city to try to bring an end to the violence.

The killing of the scholar led to religious leaders calling a strike.

They are also seeking to guarantee Islamic laws in the constitution, make Friday the national weekly holiday and end interest charges at banks.