In order to launch a protest against the tax hike, the Pakistan Flour Mills Association (PFMA) has decided to stop the supply of the commodity from today across the country.
According to the officials of the PFMA, the supply of the commodity was stopped due to the non-serious attitude of the federal government.
It must be noted that the Finance Bill 2020-21, the federal government has proposed to abolish one per cent rebate on annual sales of flour mills; increase the sales tax on bran by 10% and the sales tax on import of machinery used for making flour by 7%.
The increase in turnover tax is expected to increase the price of a 20kg bag by Rs30 while the increase in sales tax on bran is expected to increase the price of each 20kg bag of flour by Rs67. The implementation of the taxes is likely to increase the price of a 20kg bag of flour by Rs97.
