The Pakistan Flour Mills Association (PFMA) has announced to go on a three-day strike from July 17, 2019, to register their protest on imposition of general sales tax (GST) on wheat products and bran. PFMA Central Chairman Naeem Butt and Group Leader Asim Raza Ahmad announced this at a press conference along with other office-bearers and leaders of the flour milling industry here on Friday.
They said there had been no precedent of imposing GST on wheat or bran in the country in the past but it had been introduced on these products in the Finance Act 2019. They said it would directly hit all flour products and their prices would register increase. They said 17 percent sales tax had been imposed on flour and bran while 10 percent sales tax had been introduced on fine.
The PFMA leader claimed that the flour bags would register increase of Rs 170 per 20 kilograms flour bag. They warned that supply of flour would be stopped throughout the country, if the sales tax is not withdrawn. They said the Chairman FBR had said that there was no GST on flour products but Finance Act 2019 shows imposition of sales tax on wheat and bran. They alleged that wheat and flour products had been struck off from Schedule 6 which includes items exempted from the sales tax.