ISLAMABAD: The Finance Act 2024-25 has increased the maximum demand indicator (MDI) of electricity for manufacturing industries across the country by 400%.
Before the budget, the MDI was Rs460 per MW, but from July 1, it has been increased to Rs2,000 per MW. As a result, there will be a new wave of inflation in the country.
This was stated by the head of Flour Mills Association Islamabad-Rawalpindi Division in a meeting of more than one hundred flour mill owners in the federal capital. He said that in the new federal budget, flour mill owners will face withholding tax due to which there will be a wave of inflation.
The owners of flour mills have been asked to deduct 0.1% tax from buyers who are income tax filers registered for sales tax and 2.5% from non-filer buyers. He said that all taxes will ultimately burden the consumer. He said that the turnover tax in the budget, which was earlier 0.25%, had been increased to 2% for limited companies. Flour mills will not sell flour on cash and the price of flour will be paid by the buyer through bank. He further said that turnover tax for AOP has been increased to five percent. On this, FBR received advance income tax on purchase of flour from the mills.
As a result of these issues, the price of a 20 kg bag of flour will increase by Rs185 which was Rs1,900 on July 2. A bag of 80 kg fine will increase by Rs800, and its price will jump from Rs8,000 to Rs 8,800. The price of fine flour for making naan kulcha and tandoori will increase from Rs8,200 to Rs9,000.
In order to decide the future course of action, Chairman of Pakistan Flour Mills Association Punjab, Chaudhry Iftikhar Ahmed Mattu, has called an emergency meeting of the association at Lahore on July 3.
