Rawalpindi: A consultative meeting was held at the Rawalpindi Chamber of Commerce and Industry (RCCI) on the current flour crisis, and the Withholding tax deadlock between the Flour Mills Association and the Federal Board of Revenue (FBR). The purpose of calling the meeting was to review the situation arising out of the nationwide strike of flour mills and to play a role from the platform of the chamber to resolve the withholding tax deadlock between the flour mills and the FBR authorities.
The participants including representatives from the Flour Mills and RCCI leadership have shown grave concern on the newly imposed 5.5% withholding tax on flour mills and the additional 2.5% taxes on flour sales to wholesalers and retailers and feared that this will significantly increase the cost of flour by approximately Rs8- 10 per kilogram.
If the withholding tax is not withdrawn, the price hike will have a direct impact on the poorer sections of the society who are already suffering from exorbitant electricity bills.
Moreover, the government’s decision to make flour mills tax collection agents for the FBR has added an undue burden on the industry, complicating their operations and exposing them to potential legal and logistical challenges, they added.
President RCCI, Saqib Rafiq, group leader Sohail Altaf and former chairman Flour Mills Association Riazullah Khan, Tariq Sethi, Khawaja Imran, Chaudhry Afzal, including former presidents Asad Mashhaddi, Kashif Shabbir, executive committee members and representatives and chamber members of Anjuman Tajran were also present in the meeting.
After the meeting, President Saqib Rafiq, along with the representatives of Flour Mills Association, while briefing the media in a press conference, said that Rawalpindi Chamber has raised its voice on every important issue including electricity bills, budget. He said that the platform of the Rawalpindi Chamber is available to resolve the dispute between the Flour Mills Association and the FBR.
Government should have constructive talks with flour mills, group leader Sohail Altaf said that the business community is worried after the budget, the government should meet with flour mills and resolve the issue, Rawalpindi Chamber is ready to play a role to solve the flour crisis.
Former Chairman Flour Mills Association Riazullah Khan said that flour mills have been on strike for three days, we have been taxed unnecessarily, we will not become holding agents. Rawalpindi Chamber has assured that we are with you, may the government withdraw this decision otherwise it is not possible to do business.
Kashif Shabbir said that we will not become withholding agents for FBR to collect the tax and added that the stakeholders are not taken into confidence while imposing such irrational taxes.