KARACHI: Vice Chairman of the Pakistan Soap Manufacturers Association (PSMA), Tariq Zakaria has urged the government to provide immediate relief to the soap industry, which is facing a severe crisis.
He stated that the soap manufacturing sector is under immense pressure due to heavy customs duties, sales tax, income tax, and other levies.
As a result, several factories have already shut down, while many others are struggling for survival.
The issues facing the soap industry, along with budget proposals for the upcoming fiscal year 2026-27, were discussed in detail during a meeting of the Association held at a local hotel under the chairmanship of Tariq Zakaria.
Participants highlighted that the Association’s members include some of the country’s leading FMCG companies.
They said that the industry provides direct employment to thousands of people and contributes billions of rupees annually to the national exchequer through taxes and duties.
Zakaria stated that the Association’s budget proposals draw the government’s attention to the fact that different duty structures are currently applied to RBD Palm Stearin for the soap and oleo chemical industries, despite both sectors using this raw material for soap production.
He demanded that a uniform duty rate be introduced for both industries to enable the soap manufacturing sector to remain competitive and sustainable.
He further pointed out that low-grade fragrances used in soap and washing powder manufacturing are generally imported at prices ranging from USD1.80 to USD2.20 per kilogram.
However, customs authorities are clearing these imports at a valuation of USD10 per kilogram, which he described as unfair to the industry. He urged the authorities to clear all such consignments at their actual declared value.
Zakaria also noted that Sulphonic Acid, commonly known as “black oil,” is a key raw material used in the production of laundry powder, dishwashing liquid, and other detergents.
Copyright Business Recorder, 2026
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