KARACHI – The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of a possible indefinite closure of ghee and cooking oil mills across the country, raising concerns about an imminent increase in prices and supply disruption.
The warning comes amid strong opposition to the Federal Board of Revenue’s (FBR) decision to deploy officials at ghee mills under Section 40B.
PVMA President Umar Rehan Sheikh stated that if their demands are not accepted by Friday, the association will begin an indefinite strike, suspending the supply of ghee and cooking oil nationwide.
Calling the FBR’s actions “excessive,” Sheikh urged the government to withdraw what he described as harsh and business-unfriendly measures.
He demanded the removal of FBR officials from factories, abolition of Section 37A, relaxation of digital invoicing requirements.
Industry representatives have warned that any disruption in supply will likely lead to price hikes, increase inflation, and negatively affect the supply chain, with direct consequences for consumers already struggling with high food costs.
Earlier this month, the Federal Board of Revenue (FBR) assured the All Pakistan Traders Association that no tax will be deducted on bank deposits of up to Rs200,000, rejecting the rumours circulating on social media for days.
This commitment was made during a recent meeting between FBR officials and a delegation of trader representatives.
FBR also clarified that digital invoicing will not be applied to small traders and retailers. Instead, it will be implemented gradually and only on business-to-business transactions involving sales tax-registered companies.
Additionally, trader representatives will be included in the digitalization committee to ensure transparency and cooperation.
According to the FBR, provisions under Sales Tax Act Sections 37A and 37B will not apply to small traders.
Furthermore, no large industrialist will be arrested under these provisions. The purpose of these legal clauses, FBR emphasized, is solely to prevent the use of fake invoices.
It was also agreed during the meeting that a separate session will be held to develop a new mechanism to address concerns about customs raids in marketplaces.
