Flour Mills Association stops deliveries across Pakistan in protest against new taxes

Lahore, July 6: The Pakistan Flour Mills Association has announced its decision to stop supply of flour across the country from July 11 (Thursday) in protest against the new taxes in the federal budget.

“We call on the federal government to abolish withholding tax as a tax of 5.5 percent has been introduced,” said Asim Raza, chairman of the association, at a press conference in Lahore on Saturday.

This happened a day after oil traders closed their petrol stations nationwide in protest against the advance tax on petroleum products. They called off the strike because of the problems tourists were having with it.

There will be no additional tax on petrol stations, the Federal Board of Revenue announced on Friday evening after successful negotiations between the government and the Pakistan Petroleum Dealers Association.

Raza said the mill owners wanted to close their mills “immediately,” but he had given them until Wednesday. “From Thursday, they will stop supplying the market.”

The new tax will make a 20-kilogram sack 150 Pakistani pesos more expensive, he said, adding that the general meeting of Pakistani flour mills had decided not to mill wheat from July onwards.

To ensure affordable flour supply, the Punjab Food Department has cancelled the licenses of three flour mills for selling expensive flour and invited complaints from 52 flour mills for poor management.

Punjab Food Minister Bilal Yaseen said action would be taken against falsified records and mills offering flour at higher prices.