Islamabad ( Ehsan Bukhari Special Reporter)
The Federal Board of Revenue (FBR) has appointed inspectors in oil and ghee mills across the country to catch tax evasion. This move sparked protests from the Pakistan Vanaspati Manufacturers Association, which threatened to stop supply nationwide. After negotiations, Special Assistant Haroon Akhtar gave the industry one month to resolve the issues.
The Pakistan Vanaspati Manufacturers Association had warned of shutting down factories and stopping ghee supplies. Factory owners demanded the removal of Section 37A, digital invoice rules, and the cash limit of two lakh rupees in banks during talks. Chairman of the association, Omar Rehan, said that a committee meeting was held under the leadership of Special Assistant Haroon Akhtar. He added that if their demands were not met in the meeting, the ghee mills would be closed countrywide.
FBR has deployed officers under Section 40B in ghee mills nationwide, creating fear in the industry. The association rejected the policy where FBR officers act as both police and judge. They stated that all taxes are already collected at the time of import and an additional 10% value addition tax is charged. They also complained about delays in refunds worth billions.
The association has informed the Finance Minister during a meeting in Islamabad, raising their concerns and demanding the removal of Section 37A, digital invoicing, and the two lakh cash limit.
Meanwhile, talks between the government and business community on controversial parts of the Finance Bill were successful. FPCCI President Atif Ikram Sheikh and chamber leaders announced postponement of the planned strike. The meeting was positive, and no strike will take place across the country today.
Atif Ikram Sheikh said all chambers support the issue. Some members were upset, but after the meeting, they agreed with the federation. The federation acts as a bridge between the business community and the government. The government listened well to business concerns and agreed to withdraw controversial parts of the Finance Bill and Sales Tax Act. The recommendations of the meeting will be presented to the Prime Minister for final approval.
