Flour mill owners have announced a strike starting on July 11 in protest against the introduction of a 2.5 percent withholding tax in the budget for 2024-25.
The owners of flour mills stated that they are already struggling with high electricity bills, making it hard to operate their businesses.
They added that the new 2.5 percent withholding tax will make their situation even worse.
They demanded that the government cancel the tax decision and announced a strike starting on July 11.
The Flour Mills Association strongly opposed the large tax hikes outlined in the 2024-25 budget, warning that this could lead to a rise in flour prices by Rs 5 to Rs 7 per kilogram.
Aamir Abdullah, the association’s chairman, cautioned that if the government does not revoke the new tax, they may initiate a strike, possibly leading to the closure of flour mills nationwide.
Abdullah emphasized that the government should reconsider its decision and remove the tax on wheat products. He pointed out that implementing a withholding tax will inevitably increase prices, affecting both consumers and retailers.
According to the association’s estimates, the cost of a 10kg bag of flour could go up by Rs 50, while the price of fine flour might rise by Rs 7 per kilogram. They also predicted significant price hikes for other wheat products, potentially pushing the price of fine flour to Rs 460 per sack. This situation underscores the concerns of flour mill owners and their expectations of how the tax changes will impact the market and consumers.
Copper Prices Continue Rebound Amid US Rate Cut Hopes And China Stimulus Prospects
