PVMA voices concern over rising ghee and oil rates

KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) has expressed concern about the increase in the prices of ghee and cooking oil by up to Rs 15 per kg.

PVMA Chairman Sheikh Umar Rehan, while expressing concern over the budget measures, said that the scope of the ‘Third Schedule’ has been expanded in the Finance Bill, under which tax will now be collected based on ‘maximum retail price’.

He clarified that due to this new system, the burden of taxes on the ghee and oil industry will further increase and manufacturers will have no choice but to pass on the burden of this additional cost to consumers, resulting in ghee and cooking oil becoming expensive across the country.

The association chairman said that the ghee and oil industry is already burdened by heavy taxes.

The PVMA had formally demanded from the government before the budget to reduce the tax rates on edible oil and ghee so that affordable items could be provided to the common man, but instead of providing relief, the government has further increased the financial pressure on the manufacturers.

The PVMA said that the new tax structure will change the entire method of calculation and collection of sales tax, which will adversely affect the stability of prices in the market.

The association has strongly demanded that the government review this decision and provide relief to the industry in the budget so that the inflation of food items can be controlled and the public can be saved from further financial distress.