Flour mills shut as strike against more taxes continues

KARACHI: Pakistan Flour Mills Association (PFMA) continued its strike against a proposed increase in taxes in the federal budget for the fiscal year 2021-22 on Friday.

The association linked calling off the strike with issuance of a notification by the Federal Board of Revenue (FBR). It said flour mills will remain shut today with suspension of supplies of flour and other by-products.

About 80 large and small flour mills have been closed in various areas of Karachi to protest the imposition of tax on chokar (bran) and increase in the rate of turnover tax on flour mills in recently announced budget 2021-22.

PFMA Chairman Chaudhry Muhammad Yousaf had announced a two-day countrywide strike in the first phase of their protest starting Thursday against the turnover and sales taxes imposed by the government.

He threatened that the millers will go on strike for an indefinite period from 30th of June if their demands are not accepted. The millers demanded of the government to withdraw recently imposed 17 per cent GST on bran (Chokar).

Federal Board of Revenue (FBR) on Wednesday decided to withdraw proposed 17 per cent sales tax on chokar (bran).

A spokesperson of FBR in a clarification said that, the income tax rate on the turnover of flour mills will remain at 0.25 per cent. He maintained that the omission in the Finance Bill-2021 will be corrected via an amendment.