The All Pakistan Flour Mills Association went on a nationwide strike and closed down mills across the country to protest the imposition of withholding tax, leading to disruption of flour supplies in major cities.
Association president Asim Raza told Samaa TV that they have decided to continue the strike until their demands are met, highlighting concerns over the newly introduced tax measures.
Expressing strong opposition to the government’s decision to designate flour mills as withholding agents for tax collection, Raza sought an exemption to the move, terming it unacceptable. He also warned of increased flour prices due to the 5.5% withholding tax. He stressed that this tax will have a significant impact on consumers and disrupt the supply chain.
“A tax of Rs 605 on a bag of Rs 11,000 is not appropriate,” Asim Raza pointed out and announced that the nationwide strike will continue until their demand is met.
The strike effectively halted the milling and supply of wheat across the country, affecting not only the availability of flour but also related products such as animal feed.
Lahore
Flour supplies were stopped in the market and grocery stores in Lahore near the mills. The Grocers’ Association says there is a week’s supply left in the market, raising fears of possible shortages if negotiations do not resolve the dispute quickly. They said that if action was not taken there could be a shortage of flour.
The grocery stores have appealed to the government and the mills to end the strike and hope that the Punjab Chief Minister will bring the situation under control.
Karachi
Flour mills also stopped in Karachi and milling of wheat stopped. Aamir Abdullah, chairman of the Sindh Zone of Pakistan Flour Mills Association, echoed the sentiments of discontent and said they have launched an indefinite strike until the government withdraws the tax measures.
The suspension of wheat supplies also affected the supply of bran intended for animals. Abdullah said the introduction of the FBR tax will lead to an increase in the price of flour by Rs 8 per kg. “Wheat milling will remain suspended until the demands are met,” he declared.
Peshawar
Similar sentiments were expressed in Peshawar, where Flour and vendors joined together in protest, leading to a major shortage of flour across the city. The flour market in Peshawar is effectively closed.
Quetta
Meanwhile in Quetta, the leader of the strike, Chairman of the Zonal Association of Mills Nasir Agha, highlighted the economic impact of the tax on flour traders and mills and warned of a looming economic crisis if the taxes were not reassessed.
