Latest news with #PakistanVanaspatiManufacturersAssociation
Business Recorder
24-07-2025
- 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PVMA threatens to shutdown ghee production if FBR powers not withdrawn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
Business Recorder
21-05-2025
- Business
- Business Recorder
PVMA seeks removal of Section 8B of Sales Tax Act in budget
KARACHI: Sheikh Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA) has urged the federal government, Finance Minister Senator Muhammad Aurangzeb, and the Chairman of Federal Board of Revenue (FBR) to abolish Section 8B of the Sales Tax Act for the edible oil and ghee industry in the upcoming federal budget. Currently, Section 8B mandates the advance withholding of 10% of input costs, which Sheikh Rehan described as an unfair burden on an industry that deals with essential food products. 'This clause should not apply to the edible oil and ghee sector, which is already under immense financial pressure due to multiple layers of taxation,' he said. He emphasized that the industry is grappling with rising production costs, which it can no longer sustain. One of the key challenges, he noted, is the delay in the release of billions of rupees in sales tax refunds, currently held up by the FBR. 'Timely disbursement of these refunds is essential to ensure manufacturers have the working capital they need,' Rehan added. He explained that if refunds are paid on time, the industry would not need to rely on expensive bank loans, which would significantly lower production costs. 'Ultimately, this would lead to a reduction in the prices of ghee and cooking oil — benefiting consumers directly.' Sheikh Umar Rehan stressed that if the government aims to curb inflation, it must adopt industry-friendly policies. He highlighted the removal of Section 8B and the prompt payment of sales tax refunds as critical steps toward stabilizing the edible oil sector and providing economic relief to the public. Copyright Business Recorder, 2025
Express Tribune
29-01-2025
- Business
- Express Tribune
Country faces ghee, cooking oil shortage
Listen to article Pakistan is facing potential shortages of ghee and cooking oil, with shipments of edible oil stuck at Port Qasim for over a week, sparking concerns about supply disruptions, Express News reported. The clearance process for edible oil shipments has come to a standstill, leading to fears of a shortage in the country. Over the past week, no edible oil consignments have been cleared. Sheikh Omar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association, stated that there is no available space at the terminal to unload the shipments. He added that 8 to 10 ships, carrying more than 70,000 metric tonnes of palm oil, are waiting in queues to discharge their cargo. This situation is threatening to cause a shortage of ghee and edible oil in the market. The association further revealed that heavy demurrages and fines are being imposed on the consignments stuck at the port, exacerbating the financial impact. The suspension of customs software (PSW) is also affecting the clearance process, leading to significant losses for importers. The lack of clearance is worsening the edible oil shortage. Rehan noted that the halt in clearance is causing severe damage to the economy, with importers facing losses worth billions of rupees due to the delay in shipment processing. The delay has highlighted the ongoing challenges at Pakistan's ports, which are vital for the smooth flow of goods into the country.
