ISLAMABAD, July 17: Pakistan Vanaspati Manufacturers’ Association (PVMA) on Wednesday called off its strike on the government’s assurance to consider/accept the demands.
Briefing newsmen, PVMA chairman Haji Mohammad Akhtar said that the negotiations with the tax authorities had been successful after which the PVMA member units had decided to resume their operations forthwith.
PVMA has threatened the government to close down all vegetable ghee and cooking oils mills and its supply to the market from Wednesday against the levy of taxes and payment by buyers through banks.
A major demand of the PVMA to allow receiving of payment in cash instead of cheque in case of transaction of over Rs50,000 as required under section 73 of the sales tax was accepted, the PVMA chairman said.
Mr Akhtar said the Central Board of Revenue had issued instructions clarifying grievances viz-a-viz section 73 of the sales tax, 1990 to the satisfaction of the PVMA.
He said that other issues relating to minimum withholding tax and warehousing surcharge would be reviewed and addressed shortly.
The PVMA chairman expressed the hope the government would continue to extend cooperation to the association in future in the same spirit.
Meanwhile, member direct taxes and CBR official spokesman, Vakil Ahmed Khan said that at the outset of the meeting, the PVMA chairman explained that the association had not given any strike call.
Talking to newsmen, Mr Khan said that according to the PVMA chairman, some units were finding it difficult to operate, which was conveyed to the Press.
During the meeting, secretary industries, Dr. M. Akram informed the PVMA that the government was very keen to help the industrial units, the spokesman said.
Mr Akram assured the PVMA delegation that their views would be given consideration with utmost sympathy and compassion.
According to spokesman, CBR chairman Riaz Ahmed Malik told the participants that section 73 was not aimed at the sectors on which further tax at the rate of three per cent was not leviable. Since no further tax was leviable on ghee and edible oils, there was no compulsion to sell against cheques only, he said.
Regarding the pre-budget irritants like three per cent withholding tax and one per cent warehousing charges, Mr Malik informed the delegation that the views of PVMA would be considered when tax policy was reviewed in due course, the spokesman added.
