Edible Oil Industry Appeals for Tax Relief Amid Financial Strain

Karachi: Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan has called on the government to release pending sales tax refunds, citing severe financial pressure on the edible oil and ghee industry due to excessive taxation and regulatory challenges under Sales Tax Sections 8B and 40B.

During the PVMA General Body Meeting in Karachi, attended by senior office bearers and members of the association, as well as Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh, Sheikh Umer Rehan highlighted the industry’s struggle to maintain operations amid escalating costs.

He noted that 90% of the sector’s raw material is imported, and businesses are incurring significant losses due to rising duties and taxes. “The industry is already paying over 45% in taxes, including 35% import duty and 10% advance tax. This burden is excessive and falls only on the registered and formal sector,” he stated.

Sheikh Umer Rehan pointed out that extended delays in refund payments have led to liquidity shortages, hindering manufacturers from sustaining production. He added that funds trapped with the Utility Stores Corporation have worsened 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 emphasized.

He warned that without prompt relief, production would be adversely affected. He urged the government to ease regulatory demands and address administrative challenges to ensure the industry’s continuity.

The meeting concluded with a decision to establish a joint committee to formally present industry issues to relevant government authorities for timely resolution.