Key Takeaways:
- Pakistan Flour Mills Association (PFMA) plans a nationwide strike starting July 10.
- The strike is in response to the implementation of a withholding tax.
- PFMA argues that the tax will increase flour prices and burden consumers.
Nationwide Strike Announced
The Pakistan Flour Mills Association (PFMA) has announced a nationwide strike commencing on July 10 in protest against the recently imposed withholding tax. This decision was made in a meeting attended by PFMA central chairman Asim Raza, provincial chairmen, and flour mill owners.
Opposition to Withholding Tax
Asim Raza, speaking at a press conference, emphasized that if the withholding tax is not rescinded, the association will proceed with the strike. He stressed that flour mills should not be responsible for collecting taxes on behalf of the Federal Board of Revenue (FBR), stating that tax collection is the government’s responsibility, not that of the flour mills.
Impact on Flour Prices
Raza highlighted that flour mills are already compliant with tax regulations and contribute to the tax system. He warned that the new taxation measures introduced by the FBR would lead to higher flour prices, adversely affecting consumers. He argued that since flour is a staple food, it should be exempt from such taxes to avoid placing additional financial strain on the public.
PFMA’s Stance
The PFMA’s central concern is that the imposition of the withholding tax will not only complicate the tax collection process but also make an essential commodity more expensive for ordinary citizens. The association is calling for the government to reconsider and withdraw the withholding tax to prevent the planned strike and ensure the affordability of flour.
Moving Forward
With the strike set to begin on July 10, the PFMA hopes to pressure the government into rethinking its tax policies. The association’s stance is clear: they will not act as tax agents for the government and will take necessary action to protect both the industry’s and consumers’ interests.
