PVMA threatens to shutdown ghee production if FBR powers not withdrawn
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.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Prices of perishables surge for 5th week
A surge in prices of perishable commodities in the province has persisted for the fifth consecutive week, coupled with widespread overcharging that has pushed everyday vegetables out of reach for the average consumer. Hardly any vegetable is available below Rs200 per kilogramme, highlighting the severity of the price crisis. Rampant violations of official rate lists continue, showing that a newly formed price control department has failed to make any meaningful impact. This week, the price of live chicken rose by Rs15 per kg to Rs389-403, but sellers charged Rs450-480. Chicken meat was fixed at Rs584 per kg, but sold at Rs 620-670, while boneless chicken fetched Rs1,100-1,100. Potato soft skin A-grade was fixed at Rs80-85 but sold for Rs 140-150; B-grade was set at Rs65-70 and C-grade at Rs55-60, with mixed varieties selling for Rs120-130. Sugar-free A-grade potatoes were fixed at Rs55-60, B-grade at Rs45-50, and C-grade at Rs35-40, though mixed were sold at Rs100-120. Onions remained unchanged officially at Rs45-50 per kg for A-grade, but were sold at Rs80-100. B-grade sold for Rs35-40 and C-grade for Rs26-30, while mixed went for Rs60-70. Tomatoes saw another increase of Rs5 per kg, officially set at Rs86-95 but sold at Rs150-160. B-grade was fixed at Rs75-80 and C-grade at Rs70-75, while mixed quality tomatoes went for Rs120-130. Only one variety of apple was fixed at Rs150-225 but sold at Rs200-350. A-category bananas rose Rs5 per dozen to Rs 92-215 but were sold at Rs 250-300. B-category bananas were fixed at Rs 34-150, sold at Rs200-230, while C-category was fixed at Rs90-100 but sold at Rs150-180. Dates increased by Rs10 to Rs460-490 but sold between Rs900 and Rs2,000. Papaya dropped Rs55 to Rs305-320 but wasn't available in the market. Cantaloupe declined by Rs20 to Rs134-140 but sold at Rs150-200. Peach fell by Rs35, fixed at Rs180-275 but sold at Rs250-400. Mangoes of various types were fixed at Rs150-260 but sold at Rs200-400. Cherry boxes remained at Rs380-400 but weren't available.
Express Tribune
3 hours ago
- Express Tribune
Plugging tax leaks
Listen to article That more than Rs2.25 trillion have been lost to tax evasion through 'fake' and 'flying' invoices in just two years is a staggering admission — and one that lays bare the scale of institutional failure plaguing Pakistan's revenue machinery. The figure, disclosed by the Federal Board of Revenue, represents nearly a third of the total taxes collected on the customs side, showing just how deeply entrenched the problem has become. Such large-scale evasion at a time when the country is navigating a fragile economic recovery is not only unsustainable but damaging to the government's credibility. Successive administrations have repeatedly promised to broaden the tax base and improve documentation, yet loopholes that enable outright fraud continue to be exploited with impunity. The use of fake invoices to claim undue input tax credits or reduce tax liability has become a routine practice, facilitated in many cases by internal collusion. FBR has claimed that it is the only federal institution to have taken action against its own officers involved in such malpractices. However, internal accountability alone will not suffice. While punitive measures may deter some, the persistence of such fraudulent practices points to a structural rot that requires far more than selective disciplinary action. Pakistan's low tax-to-GDP ratio is a well-documented constraint on fiscal policymaking. It limits the state's capacity to provide essential services and meet its debt obligations without resorting to regressive indirect taxation or repeated external borrowing. To plug these revenue leaks, the government must move towards comprehensive digitisation of invoicing and supply chains along with stronger audit systems — all the while depoliticising the FBR's functioning. No serious economic recovery can be achieved while the state remains incapable or unwilling to curb fraud within its own revenue apparatus. This haemorrhaging must end if the country wants sustainable recovery.
Business Recorder
6 hours ago
- Business Recorder
New official sugar prices notified for Karachi
Karachi Commissioner Syed Hassan Naqvi on Sunday issued a new official price for sugar in the city, with a notification now in effect. According to the notification, the new wholesale price for sugar has been fixed at Rs 170 per kilogram, while the retail price is set at Rs 173 per kilogramme. Unjustified hike in sugar prices will not be allowed: Govt All wholesalers, retailers, and departmental stores have been strictly instructed to implement the new prices. Commissioner Naqvi warned that legal action would be taken against anyone found violating the official rate. Sellers of sugar have also been directed to prominently display the new prices. The move is aimed at regulating the market and ensuring the commodity is sold at the government-fixed rate.
