Flour mills stop wheat crushing against tax, announce halting supply from tomorrow

Flour mills on Wednesday stopped washing and crushing wheat countrywide in protest against the imposition of withholding taxes, and have announced a halt in flour supply starting tomorrow.

According to the 24NewsHD TV channel, the flour mill owners strongly opposed the government's decision to enforce withholding taxes 236G and 236F on them.

The channel reported that the negotiations between FBR and the flour mills association has been failed and the flour mill owners have ceased wheat crushing today. 

Flour Mills Association Chairman Asim Raza has announced that the flour supply will be halted tomorrow, July 11, and will remain closed until the withholding tax is withdrawn. 

The flour mills association chairman said grinding would be stopped and the supply of flour to the market would be suspended until the tax is revoked.

Asim Raza explained that the tax rates imposed are 0.10% on filer wholesalers, 0.50% on filer retailers, and 5.5% on flour mills, which will increase the price of a 20 kg flour bag by 106 rupees. The prices of refined flour and fine flour will also rise by 460 rupees per bag, he added.

The association chairman said the wholesale and dealership network for flour consists mainly of small shopkeepers, most of whom are non-filers. 

He said the tax rates imposed are 2% on non-filer dealers, 2.5% on non-filer retailers, and 5.5% on flour mills, and this tax imposition will increase the price of a flour bag by 185 rupees and other products like refined flour and fine flour by 800 rupees per bag.

Reporters: Saeed Ahmed Saeed and Ashraf Khan