PVMA concerned over new sales tax mechanism

KARACHI: Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, has expressed serious concerns over the new sales tax mechanism introduced in the federal budget for ghee and cooking oil, warning that prices could rise by up to Rs10–15 per kilogram. He stated that the ghee and cooking oil industry is already operating under a heavy tax burden, but instead of providing relief, the government has further increased financial pressure on the sector through additional taxation measures. According to him, the budget has expanded the scope of the Third Schedule by shifting sales tax collection on ghee and cooking oil to a mechanism based on the Maximum Retail Price (MRP). He said this change will significantly increase the tax burden on the industry. Sheikh Umer Rehan warned that as a result, the prices of ghee and cooking oil are likely to increase by Rs10 to Rs15 per kilogram, which would directly impact consumers across the country. He added that PVMA had already urged the government prior to the budget to reduce taxes on the edible oil and ghee sector in order to provide relief to the public. However, instead of easing the burden, the new fiscal measures have further increased taxation on the industry. He cautioned that higher taxes will raise production costs, making it increasingly difficult to maintain price stability in the market. The PVMA chairman urged the government to review the proposed sales tax collection system and withdraw the changes related to the Third Schedule to protect both the industry and consumers from additional financial strain. He emphasized that ghee and cooking oil are essential daily-use commodities, and any additional taxation on them will contribute to inflation and further increase the financial difficulties of the common man. Copyright Business Recorder, 2026

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