Flour Shortage Likely As Mills Decide to Extend Nationwide Strike

The All Pakistan Flour Mills Association has decided to extend its nationwide strike against the new 5.5 percent withholding tax in federal budget 2024-25, The association has demanded the government to withdraw its decision to designate flour mills as withholding agents. Chairman Asim Raza said on Thursday that the withholding tax would significantly increase the price of a Rs. 11,000 flour bag by Rs. 605. Raza said the government’s decision was unacceptable and insisted that the strike will persist until their demands are met. He also mentioned that there has been no official contact from the government or the Federal Board of Revenue (FBR) to address their concerns. Flour mills across Pakistan have joined the nationwide strike, displaying protest banners at their entrances and garnering support from flour sellers in various markets. The strike would continue indefinitely until the federal government abolishes the withholding tax on flour, halts the increase in MDI rates in electricity bills, and lifts the ban on the free movement of wheat by the Punjab government. Notably, the authorities had also ordered all mills to collect a 2.5 percent withholding tax on flour sales from non-filer retailers and 2 percent from non-filer wholesalers, which hurt the industry’s grievances. The ongoing strike has raised concerns about a potential flour crisis across the country due to the disrupted supply chain.