Latest news with #PVMA
Business Recorder
5 days ago
- Business
- Business Recorder
Govt mulling asking CCP to take action against vanaspati makers?
ISLAMABAD: The government is likely to direct the Competition Commission of Pakistan (CCP) to take action against vanaspati manufactures on suspension of collusive behaviour as the industry has not passed on the reduction in prices of commodity to the consumers, sources in Commerce Ministry told Business Recorder. On March 13, 2025, during discussion on presentation on status of availability and price fluctuation of vegetable ghee/ cooking oil, the Economic Coordination Committee (ECC) of the Cabinet directed that the Ministry of Industries and Production to present the status of availability and prices variation of the commodity in the next meeting of the ECC, given the rising price trend of vegetable oil. In this regard, the MoI&P held two meetings with Pakistan Vanaspati Manufacturers Association (PVMA) in April and May 2025 for deliberations. 'Anti-competitive practices'; CAT upholds Rs50mn fine on Vanaspati Manufacturers Association The data available with Pakistan Bureau of Statistics (PBS), Federal Board of Revenue (FBR) and Ministry of National Food Security and Research was also consulted. According to sources, it was observed that since early December, 2024, there had been a 24% decline in the international price of palm oil, whereas the price of cooking oil in the local market is still higher by 4.5% compared to the peak in international prices. An overview of Pakistan's Ghee sector suggested that import and marketing of edible oil and ghee is not regulated. PVMA is a registered association with 148 members and 450 licenced brands of ghee and oil. Market share of imported oil and oil seeds is 89% (3.842 Million MT) while locally produced-oil seeds have a share of 11% i.e., (0.474 Million MT) only. Total requirement of edible oil in Pakistan is around 4.2 to 4.3 million MT. Pakistan is the third largest importer of oil and oil seeds in the world and imported around 88% of palm oil/olein from Indonesia and around 11%imports from Malaysia. Furthermore, soft oils i.e., Soybean, Sunflower, Canola are imported from Argentina, Brazil, United States, Ukraine etc. PVMA maintained that current stocks of around 375,000 MT of palm oil and olein are available at ports, which are sufficient for one month. Furthermore, ships are arriving on regular basis. Regarding price, the PVMA revealed that it was a wrong perception that local edible oil or ghee market is closed and monopolistic as more than 148 manufacturers are registered with PVMA. Consequently, due to intense competition, it is not possible for a seller to sell at a higher price. The prices will further fall when the cheaper Palm oil/olein reaches ports within around two and half months. Moreover, due to new trade policy introduced by US, there is a recession in palm oil and olein market. The sources said that ample stocks are available in the country. However, the impact of international prices is generally transferred to local market after two months when the imported raw materials reach Pakistan. The impact of decreasing international prices in the month of December, 2024, was not transferred to general public despite lapse of more than two months. 'The Competition Commission of Pakistan should take necessary action to ensure no cartelisation in oil and ghee sector and provincial governments should vigilantly monitor the prices of different tier brands,' the sources continued. Copyright Business Recorder, 2025
Express Tribune
6 days ago
- Business
- Express Tribune
Vanaspati manufacturers threaten closure over tax
Listen to article The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite nationwide shutdown of ghee and cooking oil production if the Federal Board of Revenue (FBR) does not withdraw controversial tax enforcement powers within 48 hours. At a press conference following the association's General Body meeting in Karachi, PVMA Chairman Sheikh Umer Rehan said the strike was unanimously approved by members. However, the strike is on hold for two days due to ongoing FPCCI-FBR talks facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad. "We have delayed the strike by 48 hours, hoping that negotiations between FPCCI and FBR under SIFC supervision will bring results. If not, we will halt production across Pakistan," Rehan warned. According to a statement released on Wednesday, PVMA opposes new amendments in the Income Tax Ordinance in Budget 2025-26, particularly Sections 40B, 40C, 21S, and 8B. These allow FBR to monitor private businesses and grant power to arrest alleged defaulters without warrants under Section 37A. Rehan said these powers mirror the National Accountability Bureau (NAB), raising fears of arbitrary interference in commercial activities and would lead to harassment. "If NAB-like officers monitored the FBR chairman, could he work freely? Then how can we work under similar pressure?" he asked. PVMA highlighted its economic role, saying the sector is the second-largest taxpayer after petroleum. Rehan said the industry pays 35% tax on imports and 10% on sales but still faces raids and arbitrary rules. He also claimed that utility stores owe the industry over Rs6.5 billion, while billions in sales tax refunds remain unpaid. He added that the sector lacks capacity for immediate compliance with the newly introduced digital invoicing requirement. "Digitisation takes time and investment. We can't do it overnight," he said. The PVMA said it prefers dialogue but warned that if the government fails to act, it will proceed with a shutdown.
Business Recorder
6 days ago
- Business
- Business Recorder
PVMA threatens to shutdown ghee production if FBR powers not withdrawn
KARACHI: The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite shutdown of ghee production across the country if the government fails to withdraw certain powers granted to the Federal Board of Revenue (FBR) within 48 hours. Speaking at a press conference following a general body meeting held at a local hotel on Wednesday, PVMA Chairman Sheikh Umar Rehan announced that the industry has postponed its planned strike for 48 hours due to ongoing talks with the Special Investment Facilitation Council (SIFC). However, he made it clear that if the government does not address their demands by the deadline, ghee mills across the country will be shut down. 'All our members have unanimously given a mandate for an immediate strike. We are making a final attempt to resolve issues through dialogue. If that fails, we will be left with no choice but to act,' said Rehan. The general body meeting was attended by prominent industry leaders including Khalid Islam, Masood Pervaiz, Asjad Arif, and Rashid Jan Mohammad. Key Issues Raised by PVMA: Harassment by FBR Officials: The association alleges that FBR officers posted at ghee mills are harassing manufacturers and demanding historical business records beyond their legal mandate. Unjustified Tax Burden: PVMA claims the industry is already paying 45% in total taxes, including a 35% import duty and a 10% advance tax, which they deem excessive. Outstanding Dues: Utility Stores Corporation reportedly owes over Rs. 6.5 billion to ghee manufacturers. Digital Invoicing Concerns: The industry says it is not yet ready for mandatory digital invoicing, citing a lack of full digital infrastructure. PVMA is particularly opposed to FBR's enforcement powers under Sections 40B and 40C, and the requirement to monitor digital sales and transactions above Rs. 200,000 calling them excessive and unworkable under current circumstances. Rehan further questioned the FBR's accountability, asking, 'If a NAB officer were placed in the FBR Chairman's office, would he be able to work effectively?' Frustration Over Failed Dialogue: Vice Chairman Masood Pervaiz expressed disappointment over a recent meeting in Islamabad, where PVMA officials were scheduled to meet the FBR Chairman. According to Pervaiz, the Chairman delegated the meeting to a subordinate and left for another engagement, leaving their concerns unaddressed. Final Warning: The PVMA has issued a final ultimatum to the government: resolve the industry's grievances within 48 hours or face a complete nationwide halt in ghee production. Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
Food sector: PVMA Chairman terms Federal Budget disappointing
KARACHI: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has termed the Federal Budget 2025-26 disappointing for the food sector, particularly the ghee and cooking oil industry. Expressing serious concerns, he stated that instead of providing relief, the budget proposes measures that will increase production costs, inevitably leading to higher food inflation. While appreciating the governments move to abolish the 'non-filer' category and broaden the tax net, a long-standing demand of the business community. Sheikh Umer Rehan lamented that the core issues of the edible oil industry have been completely ignored in the budget. He highlighted that sales tax refunds have been pending for extended periods, causing severe liquidity challenges for the sector. Additionally, Section 8B of the Sales Tax Act imposes an undue financial burden by requiring manufacturers to pay extra taxes. 'If the government cannot ensure timely payment of refunds, it should at least abolish Section 8B immediately,' he asserted. Sheikh Umer also welcomed the removal of Additional Customs Duty (ACD) on imports in the budget but stressed that this benefit must be extended to the ghee and cooking oil sector. This, he argued, would not only provide relief to the struggling industry but also help reduce prices for consumers. He warned that the edible oil industry is already under immense pressure due to high import taxes, duties on raw materials, and the devaluation of the Pakistani Rupee. Now, with additional levies like the petroleum levy and carbon tax, production costs are set to increase dramatically, making it even harder for the industry to sustain operations. Sheikh Umer said that government has once again overlooked practical measures to boost domestic production of edible oils and to reduce reliance on expensive imports. He pointed out structural flaw in the government's economic planning, stating that the burden of taxation continues to fall disproportionately on the existing formal sector, particularly manufacturers, while the agriculture sector, contributing 25% to the national GDP, remains largely outside the tax net, contributing less than 1% to tax revenues. Sheikh Umer expressed disappointment that while the tax exemptions for the former FATA/PATA regions have been slightly reduced; they have not been entirely eliminated, leaving local manufacturers at a continued disadvantage. He urged the government to reduce indirect taxes and levies on essential food items, provide relief on raw material imports, and bring the agriculture sector into the tax net to ensure a more equitable tax regime. He warned that 'Without concrete measures to support the edible oil industry, controlling food inflation will remain an unattainable goal.' Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
SAPM assures PVMA of prompt dues clearance
ISLAMABAD: Pakistan Vanaspati Manufacturers Association (PVMA) raised the challenges facing the ghee manufacturing sector including outstanding dues in a high-level meeting. The high-level meeting was held on Friday between Prime Minister's Special Assistant, Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA). Present at the meeting were PVMA Chairman Sheikh Umar Rehan, Secretary of the Ministry of Industries and Production Saif Anjum, and representatives of the ghee industry. The discussions focused in detail on the challenges facing the ghee manufacturing sector. Haroon Akhtar Khan acknowledged the concerns raised by the industry and assured them of the government's support. 'We fully recognise the issues being faced by the ghee sector and are committed to not putting the industry under any additional pressure,' said Haroon Akhtar Khan. He assured that all outstanding dues will be paid promptly. 'The Government of Prime Minister Shehbaz Sharif will ensure the timely disbursement of all pending payments,' he stated. While acknowledging that cash disbursements take time, he emphasised that efforts will be made to expedite the process. Khan also highlighted the government's recent efforts in supporting low-income families, stating, 'Prime Minister Shehbaz Sharif successfully delivered the Ramazan package directly to deserving households.' He reiterated the Ministry of Industries and Production's dedication to resolving the industry's concerns and emphasised, 'The Government and the Ministry of Industries and Production are always available to support and address your issues.' 'Prime Minister Shehbaz Sharif is committed to taking every possible step for the facilitation of the business community,' Haroon Akhtar Khan concluded. Copyright Business Recorder, 2025
