The All Pakistan Flour Mills Association has initiated a nationwide strike and shut down mills across the country in protest against the imposition of a withholding tax, leading to disruptions in the supply of flour across major cities.
Association Chairman Asim Raza told Samaa TV that they had decided to continue the strike until their demands are met, highlighting concerns over the newly introduced tax measures.
Raza expressed strong opposition to the government's decision to designate flour mills as withholding agents for tax collection, seeking an exemption from the move and labelling it as unacceptable. He also warned of increased flour prices due to the 5.5% withholding tax. He emphasized that this tax would significantly impact consumers and disrupt the supply chain.
"A Rs605 tax on a sack of Rs11,000 is not appropriate," Asim Raza stressed, announcing that the nationwide strike will continue until their demand was met. "No formal contact has been made by the government or the FBR."
The strike has effectively halted the grinding and supply of wheat across the country, affecting not only flour availability but also related products like animal feed.
Lahore
The supply of flour was stopped in the market and grocery stores of Lahore by the mills. The grocery store association says there is a week's stock left in the market, raising fears of a potential shortage if negotiations fail to resolve the dispute promptly. They said that if negotiations were not held, there could be a shortage of flour.
The grocery stores have appealed to the government and flour mills to end the strike and hoped the Punjab chief minister will control the situation.
Karachi
In Karachi also, the flour mills have shut down and stopped the grinding of wheat. Aamir Abdullah, the chairman of the Sindh Zone of Pakistan Flour Mills Association, echoed the sentiments of discontent, stating that they have initiated an indefinite strike until the government withdraws the tax measures.
The suspension of wheat supply has also impacted the bran supply meant for animals. Abdullah said the implementation of the FBR tax would lead to an increase in the price of flour by Rs8 per kg. "The grinding of the wheat will remain suspended until the demands are met," he declared.
Peshawar
Similar sentiments were expressed in Peshawar, where the Flour Mills and dealers are united in protest, leading to major shortage of flour across the city. The flour market of Peshawar is effectively closed.
Quetta
Meanwhile, in Quetta, leading the strike, the mills association zonal chairman, Nasir Agha, emphasized the economic repercussions of the tax on flour traders and mills, warning of an impending economic crisis if the taxes are not reconsidered.
