KARACHI: Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan has urged the government to immediately release pending sales tax refunds, warning that the edible oil and ghee industry is facing severe financial pressure due to excessive taxation and regulatory hurdles, including enforcement under Sales Tax Sections 8B and 40B.
Speaking at the PVMA General Body Meeting, attended by senior office bearers and members of the association, and graced by the presence of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Atif Ikram Sheikh, Sheikh Umer Rehan said that the industry is struggling to sustain operations amid rising costs.
He noted that 90 percent of the sector’s raw material is imported, and businesses are suffering heavy losses due to a steep increase in duties and taxes.
“The industry is already paying over 45 percent in taxes, including 35 percent import duty and 10 percent advance tax. This burden is excessive and falls only on the registered and formal sector,” he said.
The PVMA chairman highlighted that long delays in refund payments have created liquidity shortages, making it difficult for manufacturers to continue production. He added that funds stuck with the Utility Stores Corporation have further aggravated the situation.
“Factories are under immense financial pressure due to delayed refunds. The government must immediately release pending payments so that the industry can continue to operate,” he emphasised.
Sheikh Umer Rehan warned that if timely relief is not provided, production will suffer. He called on the government to ease regulatory requirements and resolve administrative challenges to ensure industry continuity.
The General Body Meeting also decided to form a joint committee to formally present industry issues to relevant government authorities for timely resolution.
Copyright Business Recorder, 2025
