Edible oil industry seeks tax relief and urgent release of sales tax refunds, PVMAa

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan has urged the government to immediately release pending sales tax refunds, warning that the edible oil and ghee industry is facing severe financial pressure due to excessive taxation and regulatory hurdles, including enforcement under Sections 8B and 40 B of the Sales Tax Act.

Speaking at the PVMA General Body Meeting in Karachi, attended by senior office bearers and members of the association, and graced by the presence of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President, Atif Ikram Sheikh, Sheikh Umer Rehan stated that the industry is struggling to sustain operations amid rising costs.

He noted that 90% of the sector’s raw material is imported, and businesses are suffering heavy losses due to a steep increase in duties and taxes.

“The industry is already paying over 45% in taxes, including 35% import duty and 10% advance tax. This burden is excessive and falls only on the registered and formal sector,” he said.
The PVMA chairman emphasized that prolonged delays in refund payments have created liquidity shortages, making it challenging for manufacturers to maintain production. He added that funds held by the Utility Stores Corporation have further exacerbated the situation.

“Factories are under immense financial pressure due to delayed refunds. The government must immediately release pending payments so that the industry can continue to operate,” he emphasised.
Sheikh Umer Rehan warned that if timely relief is not provided, production will suffer. He called on the government to ease regulatory requirements and resolve administrative challenges to ensure industry continuity.

The General Body Meeting also decided to form a joint committee to formally present industry issues to relevant government authorities for timely resolution.

Photo Caption: PVMA Chairman Sheikh Umer Rehan presents traditional Ajrak to FPCCI President Atif Ikram Sheikh and former PVMA Chairman Abdul Razzaq. Masood Pervaiz and Hamid Malik are also present.