Ghee, cooking oil mills to shutdown across country

ISLAMABAD The Pakistan Vanaspati Manufacturers Association (PVMA) threatened an indefinite shutdown of ghee and cooking oil mills across the country, citing concern of an imminent price hike and supply gap.

The threat is issued as there is stiff resistance to the move by the Federal Board of Revenue (FBR) to post officials in the ghee mills in the exercise of power under Section 40B.

PVMA President Umar Rehan Sheikh said if their demands are not met by Friday, the association will launch an indefinite strike, halting the supply of ghee and cooking oil across the country.

Terming the FBR’s actions as “excessive,” Sheikh called on the government to revoke what he termed strict and business-hostile measures.

He demanded the withdrawal of FBR officials from factories, repeal of Section 37A, and easing 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 in the month, Federal Board of Revenue (FBR) guaranteed All Pakistan Traders Association that no tax would be withheld on up to Rs200,000 bank deposits, quashing the social media rumours in circulation for days.

The promise was given at a recent meeting where FBR officials met with a delegation of trader representatives.

FBR also stated that digital invoicing will not be used for small traders and retailers. Rather, it will be introduced gradually and only on business-to-business transactions between sales tax-registered companies.

Moreover, representative traders will be made a part of the digitalization committee to ensure cooperation and transparency. Provisions under the Sales Tax Act Sections 37A and 37B will not be applicable to small traders, as per the FBR.

In addition, no industrialist would be arrested big under these provisions. The intention of these legal provisions, FBR pointed out, is to prohibit the use of spurious invoices only.

It was also decided at the meeting that a special session will be arranged to evolve a new mechanism to settle issues related to customs raids in bazaars.