Islamabad: The Pakistan Vanaspati Manufacturers Association (PVMA) has issued a stern ultimatum to the federal government, demanding the resolution of what it calls “excessive and harassing powers” granted to the Federal Board of Revenue (FBR) within 48 hours.
Failure to meet the demand, the association warns, will result in a nationwide indefinite shutdown of all edible oil mills.
Speaking at a press conference, PVMA Chairman Sheikh Umar Rehan condemned the FBR for overstepping its mandate. "FBR officials stationed at oil mills are not only overseeing production and sales, as per their mandate, but are also harassing staff and demanding records from previous years,” Rehan stated. “This is unacceptable.”
He drew a provocative comparison, questioning whether FBR operations would remain functional if a National Accountability Bureau (NAB) officer were posted in the FBR Chairman’s office. “Would they still be able to work under such scrutiny and pressure?” he asked.
The ghee industry is also facing heavy tax burdens, with a 35% import duty and 10% advance tax now imposed on ghee — effectively the same 45% tax rate as before, but structured differently. Rehan noted that while no separate tax is currently levied on raw material imports, the financial strain on the industry continues to mount.
Additionally, the industry has raised concerns over digital invoicing, stating it is not yet ready for full implementation. "Digital invoicing cannot work unless the entire ghee industry is first digitized," said Rehan, emphasizing the need for industry-wide technological readiness.
According to PVMA, the government owes billions in dues to ghee manufacturers. Meanwhile, oil mills themselves owe approximately Rs. 6.5 billion to utility stores, further complicating the sector’s financial challenges.
An industry-wide strike, initially planned for today, was postponed for 48 hours in light of an ongoing meeting of the Special Investment Facilitation Council (SIFC) in Islamabad. However, PVMA maintains that the general body has already given a mandate for immediate strike action, and preparations are in place should the government fail to respond to their demands.
"The clock is ticking," warned Sheikh Umar Rehan. "If this situation is not resolved within 48 hours, we will shut down every oil mill in the country indefinitely."
