Flour mills across Pakistan to close indefinitely over withholding tax dispute M Haris

The Pakistan Flour Mills Association (PFMA) has announced a sweeping strike in protest against the new withholding tax introduced in the 2024-25 budget. Following a unanimous decision at their general body meeting on Saturday, attended by representatives nationwide, the PFMA declared that all flour mills will cease operations starting July 11.

The millers expressed vehement opposition to being tasked with tax collection responsibilities, insisting that such duties are the sole purview of the government. They cited their industry’s history of compliance with tax regulations and criticized the new measures as both impractical and unjust, placing an undue burden on flour production.

The PFMA has called upon the prime minister to reconsider the tax policy, stressing the potential for increased food prices if their demands are ignored. They warned that continued implementation of the withholding tax could lead to a prolonged shutdown of the industry, exacerbating the cost of staple foods for consumers.

Historically, governments have relied on utilities like electricity and commodities such as petroleum to collect taxes, failing to enforce direct tax collection effectively. The introduction of withholding tax on flour sales, they argue, would further escalate prices and adversely affect public livelihoods.