PVMA threatens to shutdown ghee production if FBR powers not withdrawn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.