Worries of a flour crisis have been raised as a result of flour mills in many cities around the nation stopping their operations today (Thursday) to protest the recently implemented withholding tax.
According to the the leaders of the flour mills association, the government has increased the withholding tax in the budget for 2024–2025 by up to 5.5% on various points in the supply chain of staple foods, increasing the cost of the product.
The authorities had also requested that the mills collect an additional 2.5% and 2% withholding tax on the sale of flour from non-filer merchants and wholesalers, respectively, according to the Central Senior Vice Chairman of the Pakistan Flour Mills Association (PFMA).
Around 1,500 flour mill owners, according to PFMA Chairman Asim Raza, have gone on strike. He reiterated that the mills would not be responsible for collecting the withholding tax because it increased the price of flour by Rs200.
Following the PFMA’s declaration of a walkout against the withholding tax, all 100 flour mills in the four districts of the Multan Division—60 of which are located in Multan—are closed, while 73 flour mills in the Gujranwala area have closed entirely.
As per the statement provided by the PFMA spokesman, the closing of flour mills in Faisalabad has resulted in the cessation of 200,000 bags of flour supply each day. Additionally, all 10 flour mills located in Kamalia city and four flour mills located in Khushab district were closed.
According to PFMA Chairman (South Zone) Aamir Abdullah, flour mills in Sindh have ceased to process wheat and supply of flour.
“The FBR should not be converted into tax agents; tax collection is our responsibility. “The supply of wheat products will remain closed until our demands are approved,” he stated.
It should be recalled that a few days prior, the owners of flour mills called for a walkout during a press conference and stated that they had attempted to engage in negotiations with the government. Negotiations had failed, but they had communicated their demands to the government.
