All flour mills in the country were shut down on Thursday for an indefinite period of time on the call given by the Flour Mills Association after its negotiations with the government for the withdrawal of withholding tax failed, reported 24NewsHD TV channel.
Vowing to continue their strike until and unless their demands were met, the Association office-bearers said taxes had already burdened them, and now another tax had been levied on them.
They said there was no justification for levying the tax.
The office-bearers made it clear that all flour millers in the country were united on the issue.
On Wednesday, flour mills stopped washing and crushing wheat countrywide in protest against the imposition of withholding tax, and threatened that they would stop the supply of flour from tomorrow (today).
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 the FBR and the flour mills association had 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announced that the flour supply will be halted tomorrow, July 11, and will remain closed until the withholding tax is withdrawn.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.
Reporter: Baseem Iftikhar