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Home Sector Retail & Consumer

Nationwide Strike Announced by Pakistan Flour Mills Association Over Withholding Tax

11 July 2024
in Retail & Consumer
Reading Time: 2 mins read
0
Flour mill

Pakistan Flour Mills Association has declared a nationwide strike in protest against the imposition of a withholding tax. The announcement, made on Thursday, signals a coordinated shutdown involving 1,500 mill owners and flour dealers across the country.

Asim Raza, Chairman of the Flour Mills Association, stated that the decision to strike stems from the refusal to collect the withholding tax, which, he claims, would raise the price of flour by Rs. 200 per sack. In the wake of the strike announcement, significant disruptions have been reported in several districts.

In Gujranwala district, 73 flour mills have ceased operations completely, while over 60 mills in Multan have also shut down in protest. Reports indicate that all 100 mills across the four districts in the division are now closed.

The spokesperson for the Flour Mills Association reported that in Faisalabad, the strike has halted the daily supply of 200,000 wheat sacks. Similarly, all 10 mills in Kamalia city and four mills in Khushab district have stopped operations.

The impact of the strike has extended to Peshawar, where mills have shut down in response to the Association’s appeal. In Quetta, milling operations have been halted as locks were placed on mills following the strike call by the Pakistan Flour Mills Association.

Aamir Abdullah, Chairman of the Flour Mills Association (South Zone), announced the cessation of wheat supply in Sindh. He emphasised that tax collection is the responsibility of the Federal Board of Revenue (FBR) and that mill owners should not be compelled to act as tax agents. Abdullah reiterated that wheat product supply will remain suspended until their demands are met.

The decision to strike follows an earlier announcement by flour mill owners during a press talk, where they expressed frustration over failed negotiations with the government. The owners stressed that tax collection duties should not fall on their shoulders and called for a reassessment of the policy.

This widespread industrial action highlights the significant tension between the Flour Mills Association and governmental tax authorities, with substantial implications for the nation’s flour supply chain and market stability.

For ongoing updates on this situation, stakeholders and the public are encouraged to monitor official communications from the Flour Mills Association and relevant governmental bodies.

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