Karachi:
The Pakistani Vanaspati Manufacturers Association (PVMA) warned of an indefinite nationwide end of GHEE production and cooking oil, if the Federal Revenue Council (FBR) does not withdraw controversial tax enforcement powers within 48 hours.
At a press conference after the meeting of the Association’s General Corps in Karachi, PVMA President Sheikh Umer Rehan said the strike was unanimously approved by members. However, the strike is waiting for two days due to continuing FPCCI-FBB talks facilitated by the Special Investment Facility Council (SIFC) in Islamabad. “We have delayed the strike by 48 hours, hoping that the negotiations between FPCCI and FBB under SIFC will bring results. If not, we will stop production in Pakistan,” Rehan warned.
According to a statement published on Wednesday, PVMA opposes the new amendments to the Income Tax Decree in the budget 2025-26, in particular the 40B, 40C, 21s and 8b departments. These allow FBR to monitor private companies and grant power to arrest alleged violations without warrants in accordance with Article 37A. Rehan said these powers reflect the National Account Bureau (NAB), increasing fears of arbitrary interference in commercial activities and would lead to harassment.
“If NAB -like officers were watching the FBR president, could he work freely? Then how can we work under similar pressure?” he asked. PVMA underlined its financial role, saying that the sector is the second largest taxpayer after oil. Rehan said the industry pays 35% tax on imports and 10% on sales, but still faces raids and arbitrary rules.
He also claimed that utilities owed industry to 6.5 billion Rs, while billions of sales tax refunds remain unpaid. He added that the sector does not have the ability to directly comply with the recent introductory requirement of digital pricing.
“Digitization requires time and investment. We can’t do it overnight,” he said.
PVMA said it prefers dialogue, but warned that if the government does not act, it would proceed with a shutdown.
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