Flour Supply
The Flour Mills Association has made a significant announcement, declaring its decision to suspend nationwide flour supply starting from July 11 in protest against new taxes introduced in the federal budget.
Asim Raza, chairman of the association, voiced strong objections at a press conference held in Lahore on Saturday, emphasizing the demand for the federal government to abolish a newly imposed 5.5% withholding tax.
This move follows a recent protest by petroleum dealers who shut down pumps nationwide in opposition to an advance tax on petroleum products.
The strike was eventually called off after successful negotiations between the government and the Pakistan Petroleum Dealers Association, with assurances from the Federal Board of Revenue that no additional tax would be levied on petrol pumps.
Raza explained that while flour mill owners initially sought immediate closure of operations, they agreed to postpone the shutdown until Wednesday.
Effective from Thursday onwards, however, they plan to halt flour supply to the market, citing concerns that the new tax measures would significantly raise the cost of flour, making a 20kg bag Rs150 more expensive.
The decision to suspend flour supply comes amid efforts by the Punjab Food Department to ensure affordable flour prices.
Recently, the department took action by suspending the licenses of three flour mills found selling flour at inflated prices. Additionally, show-cause notices were issued to 52 flour points for inadequate management practices.
Punjab Food Minister Bilal Yaseen underscored the government’s commitment to cracking down on irregularities in the flour supply chain, targeting mills with bogus records and those engaged in price gouging.
These measures aim to safeguard consumer interests and maintain stable prices for essential food items across the province.
The situation highlights ongoing tensions between the government and industry stakeholders over fiscal policies impacting essential commodities like flour and petroleum products.
As stakeholders navigate these challenges, the focus remains on finding a balanced approach that ensures fiscal sustainability while mitigating the burden on consumers and businesses alike.
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