Karachi, Sheikh Umer Rehan, former President of the Korangi Association of Trade and Industry (KATI) and ex-Vice Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has issued a stark warning about the severe impact of government-imposed taxes on the edible oil sector. He argued that the heavy taxation, particularly through Section 8B of the Sales Tax Act, is causing significant harm to the Vanaspati ghee and cooking oil manufacturing industry, potentially leading to its downfall.

According to Korangi Association of Trade and Industry, Rehan has called for the immediate abolition of Section 8B of the Sales Tax Act. He pointed out that the enforcement of this section has resulted in billions of rupees being tied up in industries due to carried forward amounts, leading to capital shortages and stifling the growth of the sector. Rehan emphasized that the weight of these taxes not only threatens the survival of the local industry but also makes essential cooking oils increasingly unaffordable for Pakistani households.

He further cautioned that the heavy taxation regime might drive up smuggling activities, further endangering the local manufacturing base. Highlighting the critical role of the edible oil sector in Pakistan's economy, with exports exceeding 4 billion dollars annually, Rehan called on the government to adopt more industry-friendly policies to bolster growth and ensure the affordability of vital commodities like oil and ghee for the public.

Rehan has appealed directly to Federal Finance Minister Muhammad Aurangzeb, urging him to address the challenges faced by the Vanaspati ghee and cooking oil manufacturing industry by eliminating unnecessary taxes and focusing on solutions that would support industry development and consumer welfare.