KARACHI: The Pakistan Vanaspati Manufacturers Association (PVMA) has issued an ultimatum to the government, threatening to halt all ghee and cooking oil production nationwide if the Federal Board of Revenue (FBR) does not retract certain tax enforcement powers within 48 hours.

PVMA Chairman Sheikh Umer Rehan announced the potential strike following a General Body meeting in Karachi, stating it was unanimously agreed upon by association members. The strike is temporarily postponed for two days due to ongoing negotiations facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad, involving the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the FBR.

"We have delayed the strike by 48 hours, hoping that talks will yield positive results," Rehan said. "If our demands are not met, we will be forced to halt production nationwide."

The PVMA is contesting recent amendments in the Income Tax Ordinance introduced in the Federal Budget 2025-26, which they argue give excessive powers to FBR officials. Particularly concerning is the proposed Section 37A, allowing authorities to arrest alleged tax defaulters without a warrant, which the industry views as "business harassment."

Rehan likened these powers to those of the National Accountability Bureau (NAB), expressing fears of unwarranted interference in business operations. "Deploying FBR officers under such intimidating laws is unacceptable and affects our productivity," he stated.

The PVMA emphasized the economic importance of the ghee and oil sector, highlighting it as the second-largest tax-paying industry after petroleum. Despite this, the industry faces strict regulations and inspections. Rehan noted the industry pays a combined tax rate exceeding 45% and faces overdue payments and sales tax refunds from the government.

Rehan also mentioned the industry’s challenges with adopting digital invoicing, a requirement of the new tax system, stressing that such changes require time and investment.

The meeting included other senior PVMA members, including Senior Vice Chairman Asjad Arif and Vice Chairman Sheikh Khalid Islam, reflecting the united stance of the association.