Edible oil sector: KATI, PVMA slam imposition of additional taxes

KARACHI: Former president of the Korangi Association of Trade and Industry (KATI), and former vice chairman of Pakistan Vanaspati Manufacturers Association (PVMA) Sheikh Umer Rehan, has voiced concern over the government’s imposition of additional taxes on the edible oil sector. He highlighted the detrimental impact of these taxes on the Vanaspati ghee and cooking oil manufacturing industry, warning of potential ruin.

Rehan emphasised the urgent need to abolish Section 8B of the Sales Tax Act, citing billions of rupees stuck in industries carried forward.

The implementation of this section has exacerbated capital shortages and hindered industry growth, he added.

Rehan further warned that the burden of heavy taxes contributes to the affordability of essential cooking oils unbearable for households.

He cautioned against the unintended consequences of these taxes, including the potential rise in smuggling activities and the destruction of the local industry.

Calling for industry-friendly policies from the new government, Rehan highlighted the significant contribution of the edible oil sector to Pakistan’s exports, exceeding US 4 billion dollars annually. He stressed the importance of relieving the public from heavy taxes to ensure affordable access to essential commodities like oil and ghee.

Umer Rehan requested Federal Finance Minister Aurangzeb to get rid of unnecessary taxes and other problems by paying special attention to industries related to Vanaspati ghee and cooking oil manufacturing.

Copyright Business Recorder, 2024