Budget 2024: Flour price likely to increase in Pakistan

KARACHI: The recently announced budget-filled with taxes further burdened the inflation hit citizens as the price of wheat is likely to increase in Pakistan, ARY News reported on Thursday.

According to the Flour Mills Association, a significant increase in taxes on the recent announced budget 2024-25 caused the price of flour to be increased by Rs 5 to Rs 7 per kg.

In response to the soaring tax on wheat products, the Flour Mills Association has called for an emergency meeting in Lahore on Saturday.

The association’s chairman, Aamir Abdullah, warned that if the government does not withdraw the newly imposed tax, a strike may be called, which could include the closure of flour mills across the country.

“The government needs to reconsider and withdraw the tax on wheat products, withholding tax implementation will inevitably drive up prices, affecting consumers and retailers alike,” Abdullah stated.

The association estimates that the price of a 10kg flour bag will increase by Rs 50, with fine flour seeing an increase of Rs 7 per kilogram.

Other wheat products are also expected to see significant price hikes, with fine flour potentially reaching Rs 460 per sack.

Aamir Abdullah noted that only two percent of Pakistanis pay taxes, while 98 percent of sales tax is effectively passed on to poor consumers.