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Thursday, December 19, 2024

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Withholding Tax Sparks Nationwide Flour Crisis Concerns

 

Today, the Flour Mills Association has launched an indefinite strike across Pakistan, citing concerns over a potential wheat crisis due to halted supplies exacerbated by the recent implementation of the Withholding Tax. The Flour Mills Association has initiated this move in response to the suspension of wheat deliveries, raising alarms about the availability of flour in the coming days.

Strike Details and Participants

According to reports from the Flour Mills Association, approximately 1,500 mill owners have joined the strike, significantly impacting operations nationwide. In solidarity, flour dealers nationwide have also ceased operations, compounding the strike’s impact on the supply chain.

Chairman’s Statement on Taxation and Impact

Chairman Asim Raza of the Flour Mills Association emphasized at some stage in a press briefing that they declined to acquire the wheat Withholding Tax. This tax would increase the flour charge by two hundred rupees per sack if applied. The stance reflects significant worries amongst mill proprietors regarding the monetary burden this tax should impose and exacerbates the modern financially demanding situations in the flour enterprise.

Regional Impact of the Strike

The strike has led to complete shutdowns in key districts like Gujranwala, where all 73 flour mills are reported to be non-operational. Similarly, over 60 mills in Multan have closed their doors in protest against the proposed tax. Across the entire division, encompassing four districts, all 100 mills have halted production, highlighting the scale and unity of the protest.

Supply Disruption and Public Consequences

In Faisalabad alone, the closure of flour mills has halted the supply of approximately 200,000 wheat sacks daily. This disruption is expected to have immediate consequences for local bakeries, households, and businesses reliant on consistent flour availability. Additionally, smaller towns like Kamalia and Khushab are feeling the impact, with significant numbers of mills closed in solidarity with the nationwide strike.

Calls for Government Response

Amidst these tendencies, spokespeople for the Flour Mills Association have reiterated their needs. Emphasized that the collection of taxes is the responsibility of the Federal Board of Revenue (FBR), now not mill proprietors. They have called on the government to address their concerns immediately to avoid prolonged wheat processing and flour production disruptions.

The nationwide strike-through flour generators have underscored the challenges going through Pakistan’s flour industry. Particularly regarding taxation regulations and their impact on operational costs. As the state of affairs unfolds, stakeholders look forward to government responses. Hope for a decision that balances financial concerns with the enterprise’s and consumers’ desires.

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