Lahore [Pakistan], July 12 : Pakistan's urban population would probably have to grapple with a shortage of flour as the All-Pakistan Flour Mills Association (PFMA) went on strike as a mark of protest on Thursday against the new withholding tax, Pakistan-based daily, Dawn reported.
Flour dealers and owners of atta chakkis (small wheat grinding units joined the protest, causing disturbances in the supply flow of flour, Dawn reported.
Chairperson of PFMA, Asim Raza said that the measure has made flour mills withholding agents for tax collection. He said the tax is expected to increase flour prices by Pakistani Rupees (PKR) 8 per kg.
Raza said that he would continue the strike until the demands are met and the strike would adversely affect the supply chain.
"The tax measure is unacceptable and impracticable as flour dealers are refusing to lift their consignments instead of sharing their tax details for withholding tax purposes," he said.
Raza said that the imposition of a PKR 600 tax on a bag of flour worth PKR 11,000 is inappropriate. He refuted the Punjab Food Minister Bilal Yasin's claim and said that the strike had not been postponed until Ashura (July 17).
He added, "Neither the government nor the FBR has contacted us for talks or to reconsider the strike."
Iftikhar Ahmed Mattoo, chairman of PFMA's Punjab chapter, said, "We don't wish to trouble the public during Muharram, which is why the industry continued to supply flour to the market until July 10 despite bearing a tax burden of millions of rupees."
Mattoo said that now it was not feasible for them to bear the burden of tax. So, "extreme measures have to be taken". He said that flour mills across the city joined their call to ensure the survival of the industry, Dawn reported.
The strike reportedly halted wheat supply all across the nation, bringing the flour availability and that of its related products to a grinding halt.
Aamir Abdullah, PFMA's chairman for Sindh, confirmed an indefinite strike until the government withdraws the tax measures, noting that the suspension of wheat supply has also affected the bran supply for livestock.
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