Special Assistant to Prime Minister Haroon Akhtar Khan has overturned Federal Board of Revenue’s (FBR) decision to impose six per cent withholding tax on turnover of flour mills located in Islamabad, terming it against the interests of the masses.
Khan directed FBR officials to stop serving notices to flour millers and continue getting tax as per practice, as tax on turnover would jack up prices of the staple. He also asked the owners of grinders to improve their documentation to avoid taxation problems in the future.
These decisions were reached during Khan’s meeting with FPCCI President Abdul Rauf Alam who was leading a delegation of All-Pakistan Flour Mills’ Association, including its Chairman Asim Raza and former ICCI president Tariq Sadiq.
Earlier, the FPCCI president and flour millers informed Khan that tax was deducted on the commission earned by the agent, while there was no tax in case wheat was purchased from planters.
They said that now six per cent withholding tax had been imposed and notices had been sent to the millers which would increase price of flour almost by Rs 5 per kg. “We have no option to stop purchases during the season and close the mills which will result in crisis,” they said.
On this, Khan directed FBR officials to deduct tax as per practice. The FPCCI chief lauded his decision to provide relief to the business community and called him a ray of hope for industrialists and traders.
Oh really!
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