Nationwide closure announced for ghee and oil mills

The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite closure of ghee and cooking oil mills nationwide, citing fears of a looming price surge and supply shortage.

PVMA President Umar Rehan Sheikh strongly opposed FBR’s decision to post tax officials inside ghee mills under Section 40B. He said this step is too strict and creates problems for businesses. He demanded the immediate withdrawal of FBR officers from the mills, the cancellation of Section 37A, and relaxation in digital invoicing rules. Sheikh warned that if these issues are not resolved, the association will stop the supply of ghee and cooking oil across the country. This could lead to a shortage of daily-use items, rising prices, and increased inflation, which would hit ordinary people the hardest.

Earlier this month, the FBR held a meeting with the All Pakistan Traders Association to clear misunderstandings. It assured that no tax would be deducted on bank deposits up to Rs 200,000. Social media rumors suggesting otherwise were declared false. FBR also clarified that small traders and retailers would not be forced into digital invoicing systems immediately. This system will be applied gradually and only for business-to-business dealings between registered firms. Also, Sections 37A and 37B of the Sales Tax Act will not apply to small traders.

The FBR said the purpose of these tax laws is only to stop fake invoices. No industrialist will be arrested under these laws without proper reason. A special session will also be held soon to create a better process for handling customs-related issues in markets. Traders have been promised representation in digitalization committees for better trust and cooperation.