PVMA Appeals for Tax Reform to Aid Edible Oil Sector

Karachi: Sheikh Umar Rehan, the Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has called on the federal government to abolish Section 8B of the Sales Tax Act for the ghee and cooking oil industry in the upcoming budget. He addressed his appeal to Finance Minister Senator Muhammad Aurangzeb and the Chairman of the Federal Board of Revenue.

Section 8B currently mandates a 10% advance withholding of input costs, which Rehan argues is an excessive burden on a sector already under financial strain. He emphasized that the edible oil and ghee industry, which deals with essential food products, is struggling with rising production costs and multiple layers of taxation.

Rehan also highlighted the issue of delayed sales tax refunds, which he said are vital for the industry’s working capital. “Timely disbursement of these refunds is essential,” he said, noting that such delays force the industry to rely on costly bank loans.

He suggested that if refunds were paid on time, production costs would decrease, leading to lower consumer prices for ghee and cooking oil. This, he argued, would be a direct benefit for consumers.

Rehan urged the government to focus on adopting industry-friendly policies to combat inflation, specifically by removing Section 8B and ensuring the prompt payment of sales tax refunds. He believes these measures are crucial for stabilizing the edible oil sector and providing economic relief to the public.

In his statement, Rehan stressed the importance of including these demands in the forthcoming budget to ensure the sector’s sustainability and affordability for consumers.