ISLAMABAD: A strike by Pakistani flour millers due to a dispute with the government over the imposition of new taxes on sales entered its second day on Friday, threatening flour shortages in parts of the South Asian country.
Hundreds of mills across Pakistan went on strike on Thursday on a call by the Pakistan Flour Mills Association (PFMA), which represents over 900 mills, against a new 5.5 percent withholding tax imposed on the sales of flour mills in the federal budget for fiscal year 2024-25, which came into effect on July 1.
The PFMA says the government has also directed flour mills to collect another 2.5 percent withholding tax on the sale of essential commodities to retailers (non-filers) and 2 percent from wholesalers (non-filers). The association says millers also now have to collect 0.5 percent withholding tax on the sale of flour from retailers (filers) and 0.10 percent tax from wholesalers (filers).
“We are observing a nationwide strike against the government for imposing taxes and making flour millers tax collection agents,” Javed Yusuf, a former PFMA chairperson, told Arab News.
“Our strike will continue till the government accepts our demand of withdrawal of all taxes levied in the budget.”
Yusuf said around 1,600 flour mills, which directly employed some 4,000 workers, were shut across Pakistan:
“We cannot collect taxes on behalf of the FBR, it’s not our job,” he added.
The strike takes place as Pakistan navigates a tricky path to economic recovery amid double-digit inflation and a deepening macroeconomic crisis. The South Asian country has been scrambling to secure foreign investment from friendly nations and a bailout from the IMF in a bid to keep its fragile $350 billion economy afloat.
The tax-laden budget with a tax revenue target of Rs13 trillion ($46.66 billion) for the current fiscal year, up about 40 percent from the previous one, has been rejected by almost all major trade bodies and opposition parties. Pakistan’s government has taken the unpopular measures amid negotiations with the IMF, which has made tax reforms and increasing revenue a major precondition for a fresh loan program.
There are 1,725 flour mills in Pakistan and the daily national flour consumption stands at around 45,000 tons, according to the PFMA.
The ongoing strike has already halted flour supply to grocery stores across Punjab, the country’s most populous province, and market stocks are expected to last only one week.
Pakistan flour millers’ strike over withholding tax enters second day, threatening shortages
https://arab.news/8ekcv
Pakistan flour millers’ strike over withholding tax enters second day, threatening shortages
- Budget for fiscal year 2024-25 imposed 5.5% withholding tax on sales of flour mills
- Around 1,600 flour mills employing some 4,000 workers are shut across Pakistan
Zimbabwe surprise as T20 World Cup Super Eights begin without Australia
- Pakistan and New Zealand will clash in Colombo on Saturday as the second “Super Eights” phase of the T20 World Cup kicks off
- India carry hopes of millions of cricket-obsessed fans of winning back-to-back T20 World Cups and lifting the trophy on home soil
Kolkata: Pakistan and New Zealand will clash in Colombo on Saturday as the second “Super Eights” phase of the T20 World Cup kicks off without former champions Australia, who shockingly failed to make it out of their group.
Instead, surprise packages Zimbabwe, who did not even qualify in 2024, topped Group B after a stunning unbeaten campaign where they not only beat Australia but also co-hosts Sri Lanka.
An injury-depleted Australia endured a chaotic campaign and failed to make the second phase of the T20 World Cup for the first time since 2009.
Australia’s acerbic media did not hold back in their criticism, citing selection “stuff-ups” and “shambolic” preparations, including a 3-0 pre-tournament series loss in Pakistan, for the embarrassment.
Australia coach Andrew McDonald admitted his players were “devastated” but any inquest into the failure would only begin “when we exit the shores here.”
India, the world number one-ranked T20 side, are hot favorites to retain their crown on home soil.
However, in the second round they face a tough rematch of the 2024 final against an in-form South Africa in Ahmedabad at a packed 130,000-capacity Narendra Modi stadium on Sunday.
Both teams came through the first round phase with four wins from four.
India are on a 12-match unbeaten run at the T20 World Cup, stretching back to their defeat in the semifinal against eventual winners England in 2022.
No team has won back-to-back T20 World Cups or lifted the trophy on home soil, and India have the hopes of hundreds of million of cricket-obsessed fans on their shoulders.
But India have not been consistent and have a problem at the top of the order with their number one-ranked batter Abhishek Sharma recording three consecutive ducks.
Their batting has looked shaky and India were 77-6 against the United States before coming through to win.
Also in Super Eights Group 1 are Zimbabwe and the West Indies, who meet in Mumbai on Monday, with all that group’s games being hosted in India.
ENGLAND YET TO FIRE
The West Indies toppled England convincingly in the group phase and the two-time champions have all-round strength in depth.
They won the T20 World Cup the last time it was hosted in India, in 2016, and have started in clinical fashion, winning all four group games.
They will be extremely wary of Zimbabwe, whose colorful band of traveling supporters have had plenty to cheer so far. Even a washout against Ireland could not dampen their spirits.
In Sri Lanka, Group 2 pits the co-hosts against England, Pakistan and New Zealand.
The top two from each group will advance to the semifinals.
Pakistan were the last team to secure their berth. They did so by beating Namibia by 102 runs, with captain Salman Agha calling it a “complete performance” as they bounced back from a group defeat to bitter rivals India.
Another pre-tournament fancy, England stumbled through their group matches in Mumbai and Kolkata, losing to the only Test-playing side they faced, the West Indies.
Harry Brook’s side were unconvincing in wins against minnows Nepal, Scotland and finally Italy, who were making their World Cup debut.
But they return to a happy hunting ground in Kandy to face Sri Lanka on Sunday at a venue where England swept a T20 series 3-0 this month, with Sam Curran taking a hat-trick along the way.
Their top order needs to find form, with explosive openers Jos Buttler and Phil Salt yet to make a telling score and Brook failing to fire.
Sri Lanka have also been hot and cold.
Pathum Nissanka scored a superb century on Monday to all but end Australia’s tournament.
But they lost to Zimbabwe in their final group game, although Nissanka was in the runs again with 62.
