The All Pakistan Flour Mills Association has announced an extension of its nationwide strike against the new 5.5 percent withholding tax introduced in the federal budget for 2024-25.
The association is demanding that the government withdraw its decision to classify flour mills as withholding agents. Chairman Asim Raza stated on Thursday that the imposition of this withholding tax would lead to a significant increase in the price of a Rs. 11,000 flour bag by Rs. 605.
READ MORE: Is Cartoon Network Closing Down After Decades of Entertainment?
Raza emphasized the association’s firm stance, stating that the strike will continue until their demands are addressed. He highlighted the lack of official communication from the government or the Federal Board of Revenue (FBR) regarding their concerns. Flour mills across Pakistan have joined the protest, displaying banners at their entrances and gaining support from flour sellers in various markets.
The strike is expected to persist indefinitely until the federal government reverses its decision on the withholding tax for flour, ceases the increase in MDI rates in electricity bills, and lifts the wheat movement restrictions imposed by the Punjab government.
Additionally, authorities had mandated all mills to collect a 2.5 percent withholding tax from non-filer retailers and 2 percent from non-filer wholesalers, exacerbating industry grievances.
Concerns have arisen about a potential flour crisis nationwide due to disruptions in the supply chain caused by the ongoing strike.
