The Flour Mills Association has announced its decision to suspend flour supply across the country from July 11 (Thursday) in protest against the new taxes in the federal budget.

“We demand that the federal government abolish the withholding tax as a 5.5 per cent tax has been imposed,” Asim Raza, the association chairman, said at a press conference in Lahore on Saturday.

This comes a day after the petroleum dealers shut down pumps nationwide in protest against the advance tax on petroleum products. They called off the strike call due to tourists who were facing problems.

There would be no additional tax on petrol pumps, the Federal Board of Revenue said on Friday night after successful negotiations between the government and the Pakistan Petroleum Dealers Association.

Raza said that the flour mill owners wanted to “immediately” shut down the flour mills, but he has given time until Wednesday. “From Thursday, they will halt supply to the market.”

The new tax would make a 20kg bag Rs150 more expensive, he said and added that it was decided in the General Body of Pakistan Flour Mills’ meeting that they wuold stop grinding wheat from July.

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It merits here to mention that to ensure affordable flour supply, the Punjab Food Department has suspended the licences of three flour mills for selling expensive flour and issued show-cause notices to 52 flour points for poor management.

Punjab Food Minister Bilal Yaseen said that actions would be taken against bogus records and mills supplying flour at higher prices.