The federal government abolished a 5.5 percent advance income tax after successful talks with the flour mills owners. The development came after the government formed a committee to negotiate with the flour mills association as they announced and held a strike against the advance income tax imposed in the budget 2024-25. The negotiations successfully concluded, resulting in the abolition of the tax by the government and consequently the withdrawal of the strike by the mills owners. It is pertinent to mention here that the flour mills owners held a three-day strike that led to the shortage of flour, particularly in Karachi. The flour mill owners announced and held a strike on July 11 against the imposition of the tax in the budget 2024-25 The flour mill owners said that due to increasing electricity bills, they are already facing difficulties in running their business.

“The additional 2.5 percent withholding tax will further ruin our business,” they added. While demanding the government withdraw its decision to impose the tax, the flour mill owners announced to go on strike from July 11. They later, postponed the strike amid Ashura. The Atta Chakki Association also supported the strike call by the flour mill owners, resulting in a shortage of flour supply to Karachi and Hyderabad. Due to the strike, tonnes of flour could not be supplied to restaurants in both cities. The flour mill owners are protesting against the withholding tax imposed by the government.

Credit: Independent News Pakistan