KARACHI: The new sales tax mechanism introduced in the federal budget will push up ghee and cooking oil prices by Rs10-15 per kg.

In a statement on Wednesday, Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan said that the ghee and cooking oil industry is already operating under a heavy tax burden. The government, instead of providing relief, has further increased financial pressure on the sector through additional taxation measures.

The budget, he said, 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). This change would significantly increase the tax burden on the industry, he deplored.

Mr Rehan cautioned that the price hike would directly affect consumers. He recalled that the PVMA had previously urged the government to cut taxes on the edible oil and ghee sector in the budget to ease public burden. However, rather than providing relief, the new fiscal policies have further heightened industry taxes.

Published in Dawn, June 18th, 2026