PM aide stops FBR from collecting 6% WHT on turnover of flour mills

Directs tax officials to refrain from serving notices, deduct tax as per past practice

ISLAMABAD: Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan has overturned a decision of the Federal Board of Revenue (FBR) to impose 6% withholding tax (WHT) on the turnover of flour mills in Islamabad, terming it against the interest of masses.

The special assistant made the announcement in a meeting with Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam, who was leading a delegation of the All Pakistan Flour Mills Association, including Chairman Asim Raza and Islamabad Chamber of Commerce and Industry former president Tariq Saud.



Khan directed FBR officials to stop serving notices on flour millers and collect tax according to the practice prevailing for the last four years as the tax on turnover would push up prices of the staple.

He also asked owners of grinders to improve their documentation process in order to avoid tax problems in the future.

Earlier, FPCCI President Abdul Rauf Alam and the flour millers told Khan that the tax was deducted from the fee earned by commission agents whereas there was no tax in case of wheat purchase from planters.

“Now that the 6% WHT has been imposed and notices have been sent to the millers, the price of flour will rise almost Rs5 per kg, which is against the interest of masses,” a miller said.

“We have no option but to stop wheat purchase and close mills for the season, which will spark a crisis.”

Responding to arguments of the millers, Khan directed the FBR officials to deduct tax as per past practice.

Inland Revenue Member Rehmatullah Wazir, Member Customs Nasir Masroor, Member Operations Dr Muhammad Irshad and other officials attended the meeting.

Published in The Express Tribune, May 13^th, 2016.

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