Islamabad
According to local media, the concession in turnover tax for flour mills has been abolished in the finance bill presented in the National Assembly for the next financial year. There is a risk of an increase.
According to the Finance Bill for the next financial year, the sales tax rate on imports of machinery used in the manufacture of flour has been increased from 10% to 17% and the rate of sales tax on flour bran has been increased from 7% to 17%. From July 1, the turnover tax rate on flour mills’ income will be 1.25% instead of 0.25%.
On the other hand, Chairman Flour Mills Association Asim Raza has sent a letter to the Federal Minister of Finance to confirm the FBR’s unintentional mistake or deliberate tax increase in the Finance Bill and to point out the situation.
The chairman of the Flour Mills Association said in a letter that due to a possible error in the finance bill, the flour mills have been excluded from the minimum turnover tax schedule. Flour mills are subject to 0.25 per cent turnover tax in the current financial year. In the Finance Bill presented in the Assembly, flour mills have been removed from the present schedule, and from July 1, the turnover tax on flour mills will be 1.25%, and in case of increase in tax, a 20 kg bag of flour will cost Rs 30 more. Yes, the Federal Minister of Finance should correct the mistake made in the Finance Bill and save the flour from becoming expensive.
