Pakistan Flour Mills Association initiates strike against withholding tax

The Pakistan Flour Mills Association (PFMA) has taken a decisive stand against the newly imposed withholding tax in the 2024-25 budget. In response to this tax measure, the PFMA has unanimously agreed to initiate a comprehensive strike, starting from July 11. This decision was reached during a recent general body meeting, where representatives from flour mills across the country voiced their objections.

The primary point of contention for the PFMA is the burden of tax collection being placed on flour millers. They argue that this responsibility should solely rest with the government, citing their industry's history of compliance with tax regulations. The millers view the new tax policy as impractical and unfair, warning that it will significantly impact flour production.

Expressing their concerns, the PFMA has called upon the prime minister to reconsider the withholding tax. They have highlighted the potential consequences of ignoring their plea, including a potential increase in food prices. The association has cautioned that a prolonged shutdown of the industry could lead to higher costs for essential food items, affecting consumers nationwide.

Historically, tax collection in Pakistan has focused on utilities and commodities like electricity and petroleum. The PFMA argues that extending this practice to flour sales will further escalate prices and harm the public's livelihoods. The association's strike serves as a strong message to the government, urging a reevaluation of the tax policy to prevent adverse effects on the economy and the general population.

The PFMA's decision to strike over the withholding tax reflects the industry's concerns about the impact of this measure on flour production and consumer prices. As the situation unfolds, it remains to be seen how the government will respond to the association's demands. The outcome of this standoff will have significant implications for the affordability of essential food items in Pakistan.