KARACHI: The Pakistan Vanaspati Manufacturers Association (PVMA) warned on Wednesday of an indefinite shutdown of ghee and cooking oil production nationwide if the Federal Board of Revenue (FBR) fails to withdraw its controversial tax enforcement powers within 48 hours.

The announcement followed a general body meeting of the association and a press conference by PVMA Chairman Sheikh Umer Rehan, who stated that all members had unanimously approved the strike decision.

However, the strike has been temporarily deferred for 48 hours in light of ongoing negotiations between the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the FBR, facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad.

“If our demands are not met, we will be forced to halt production across the country,” Rehan said, criticising several amendments introduced in the Income Tax Ordinance through the Federal Budget 2025-26. He particularly objected to Sections 40B, 40C, 21S, and 8B, which he said give FBR officials excessive powers to interfere in private industrial operations.

PVMA gives 48-hour ultimatum over controversial tax enforcement powers

The industry’s strongest opposition centres around the proposed Section 37A, which would allow tax officials to arrest alleged defaulters without a warrant. Rehan termed it a form of “business harassment,” warning that such powers resemble those granted to the National Accountability Bureau (NAB).

“If NAB-like officials were deployed to monitor the FBR chairman, would he be able to perform his duties?” Rehan asked. “Likewise, placing FBR officers inside our premises under such intimidating laws is unacceptable and disrupts our productivity,” he said.

He added that the edible oil industry already contributes heavily to the exchequer — paying 35pc in import duties and another 10pc on sales — yet faces “arbitrary inspections and punitive rules.”

Published in Dawn, July 24th, 2025