Flour Mills Association strike: Supply likely to disrupt across country

Flour Mills Association strike: Supply likely to disrupt across country

Web Desk
July 11, 2024

Flour Mills Association strike: Supply likely to disrupt across country

KARACHI: Atta Chakki Association has also joined the strike announced by the Pakistan Flour Mills Association against the imposition of withholding tax across the country.

Mills in Karachi and Hyderabad have started to shut down and stopped grinding wheat, causing commodity crisis in the metropolis.

Flour supply throughout Sindh province including Karachi remained suspended on Thursday.

The commodity supply to factories, bakeries, hotels and restaurants could not have made due to the strike throughout the country.

Earlier on Wednesday, the Pakistan Flour Mills Association (PFMA) announced an indefinite strike in protest against the imposition of withholding tax on flour. The mills will be shut down, and wheat processing and flour supply will cease from July 11.

PFMA Punjab Chairman Asim Raza declared the closure of flour mills, stating that taxing flour, an essential food item, is unacceptable.

He emphasized that flour millers refuse to act as tax agents for the Federal Board of Revenue (FBR).

Over 600 flour mill owners approved the strike resolution in a recent meeting.

Participants expressed serious concerns about the government’s taxation measures and unanimously rejected the withholding tax. They asserted that tax collection is the government’s responsibility and that flour mills are already taxed through various means.

PFMA Central Chairman Chaudhry Amir Abdullah also announced the suspension of operations after a deadlock with the government over the withholding tax issue. He called for the withdrawal of what he termed an unnecessary tax burden on the common man’s staple food.

Abdullah criticised the FBR for failing to meet tax targets and placing excessive tax burdens on the public. He warned that if the tax is imposed, flour prices will rise further, exacerbating the financial strain on consumers.

The PFMA urged the Prime Minister to reconsider the decision and grant an exemption to the flour mill industry to keep flour prices affordable. They warned that if their demands are not met, the industry would remain shut indefinitely.

The strike decision comes amid a backdrop of rising inflation and economic challenges, putting additional pressure on both consumers and the flour milling industry.