ISLAMABAD, Sept 6: The Pakistan Vanaspati Manufacturer's Association (PVMA) has threatened to completely shut down their manufacturing units across the country if its demands are not met in two weeks.

Speaking at a news conference here on Monday, PVMA acting-chairman Sh. Muhammad Ikram demanded of the government to provide same relief for the ghee units located in the tariff areas, which was being extended to the ghee units in Fata and Pata.

He said the concession given to the units located in Fata and Pata would create an uneven playing-field for other manufacturers in the settled areas. Elaborating further, Mr Ikram said the ghee/cooking oil units in the tariff areas were required to pay customs duty on imported edible oils ranging from Rs9,050 to Rs10,800 per ton, excise duty at the rate of 15 per cent at import stage and 15 per cent central excise duty at output stage.

"While the units operated in the Fata and Pata areas are required to pay customs duty at the rate of Rs4,800 per ton and no recovery of central excise duty of 15 per cent on edible oil imports. These units were also exempted from a three per cent withholding tax on import of edible oils," he added.

Mr Ikram said that with these exemptions, the units in Fata and Pata would now have an edge of Rs13 per kg viz-a-viz the units located in the tariff areas. Answering a question, he said the tax authorities had verbally conveyed to them to finalize the issue of withheld refund of Rs220 million of around 94 ghee mills.

He said the price of ghee would reduce following a reduction in duties and taxes. He said in Pakistan the rate of duty and taxes on edible oils were highest in the region.