In a recent appeal to the federal government, Sheikh Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), urged on Tuesday that the removal of Section 8B from the Sales Tax Act for the ghee and cooking oil industry in the upcoming federal budget. Section 8B currently requires an advance withholding of 10% of input costs, which Rehan argued imposes an unfair burden on an industry already under financial strain.
He elaborated on the challenges, pointing out that rising production costs are unsustainable, and emphasized the critical need for timely sales tax refunds currently delayed by the Federal Board of Revenue (FBR). Rehan explained that prompt refund disbursements could alleviate the industry’s reliance on costly bank loans, thereby reducing production costs and, ultimately, retail prices for consumers.
Rehan also highlighted the necessity for government policies that support the industry to curb inflation, stressing that the removal of Section 8B and timely tax refunds are vital for stabilizing the edible oil sector. He strongly urged the government to address these issues in the forthcoming budget to ensure the sector’s sustainability and affordability for consumers.