Flour prices surge due to withholding tax

Due to the withholding tax imposed by the government in the annual budget for 2024–25, the price of a 20-kg bag of flour has increased by 200 rupees, rising from 1600 to 1800 rupees. 

The price of an 80-kg sack of fine flour, currently at 7800 rupees, is expected to increase to between 8200 and 8600 rupees. 

There are concerns that the price of fine flour and refined flour could increase by 460 to 800 rupees per sack. 

The tax rates imposed on wheat traders are 0.10% for filer wholesalers, 0.50% for filer retailers, and 5.5% for filer flour mills. 

For non-filer dealers, the rates are 2%, 2.5%, and 5.5%, respectively. The public is expressing frustration over the rising flour prices.

Flour mill owners argue that the imposition of a withholding tax on wholesalers and retailers will directly impact the average consumer.

Flour mill owners have demanded that Prime Minister Shehbaz Sharif review the implementation of the withholding tax and call for its immediate removal.

Reporter: Shehzad Khan Abdali