KARACHI: The Pakistan Vanaspati Manufacturers Association (PVMA) has issued a stern warning to the government, threatening an indefinite shutdown of ghee and cooking oil manufacturing plants across the country if the Federal Board of Revenue (FBR) does not withdraw controversial tax enforcement powers within 48 hours.
Addressing a press conference after the association's General Body meeting held in Karachi, PVMA Chairman Sheikh Umer Rehan announced that the strike decision had been unanimously approved by the association's members. However, the strike has been temporarily postponed for two days in light of ongoing negotiations of FPCCI and FBR facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad.
“We have delayed the strike by 48 hours, hoping that talks between the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the FBR, under the observation of the SIFC, will yield positive results. But let me be clear: if our demands are not met, we will be forced to halt production nationwide,” Rehan said.
The PVMA strongly opposes recent amendments in the Income Tax Ordinance introduced in the Federal
Budget 2025-26, particularly sections 40B, 40C, 21S, and 8B, which grant excessive powers to FBR officials to monitor and interfere in private industrial operations. Of special concern is the proposed Section 37A, which would allow FBR authorities to arrest alleged tax defaulters without a warrant, a move the industry terms “business harassment.”
Rehan argued that such sweeping powers resemble the authority wielded by the National Accountability Bureau (NAB), raising fears of arbitrary interference in commercial activities. “If NAB-like officials were deployed to monitor the FBR Chairman, how would he perform his duties?” he asked rhetorically. “In the same way, deploying FBR officers within our premises under such intimidating laws is unacceptable and directly impacts our productivity.”
The PVMA leadership also highlighted the economic contribution of the ghee and oil sector, stating that it is the second-largest tax-paying industry after petroleum. Yet instead of receiving government support and appreciation, they face punitive regulations and harassment. “We pay 35% taxes on imports and another 10% on sales, a total of over 45% in taxes. Still, we are being penalized with intrusive inspections and arbitrary rules,” Rehan noted.
In addition to concerns over legislation, Rehan disclosed that utility stores owe the ghee manufacturers over PKR 6.5 billion, while billions in sales tax refunds are still pending with the government. He emphasized that the industry is not yet equipped to adopt digital invoicing, a key requirement under the new tax system. “Digital invoicing can’t happen overnight. The entire industry needs to be digitized, which takes time and investment,” he explained.
Earlier an Extra Ordinary General Body Meeting was held which includes Senior Vice Chairman Asjad Arif, Vice Chairman Sheikh Khalid Islam, Executive Committee members Masood Parvaiz, Rashid Jan Mohammad, and other PVMA senior members were also present.
The PVMA leadership reiterated their preference for dialogue over confrontation but warned that if the government does not act within the 48-hour window, the association will proceed with a nationwide shutdown. “We want to avoid creating a shortage of essential commodities like ghee and oil, but the government must understand our concerns and immediately review the hostile tax policies,” Rehan concluded.
