Despite earlier announcement by the government that VAT will not be applied to the gold and precious gems market, most of the businesses remained closed on Thursday.
The local government is trying to calm the shopkeepers by promising tax reforms. However, it has not made any progress in having them reopened.
Following the strike by the jewelers over three percent tax hikes in the central city of Isfahan, valuable gems market was virtually shutdown in the central city of Isfahan. Since September 22, the new law went into effect forcing the merchants to pay extra taxes on all of their profits.
The jewelers set the precedence for other merchants to follow suit. Shoe sellers, textile, home appliances and other shopkeepers are closing down in support of the jewelers.
In the tourist attraction Naqsh-e-Jahan bazaar many businesses were closed on Monday.
In some cases, the State Security Forces (SSF)—mullahs' suppressive police— succeeded in forcing the shopkeepers to open. However, once they found the opportunity closed their businesses and went home for the day avoiding running into the security forces.
The strike spread to other cities yesterday, the main market in the western city of Qazvin was closed for a few hours on Monday.