The Central Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Abdul Waheed, has notified all ghee and cooking oil manufacturers to immediately reduce prices of edible ghee and cooking oil to give relief to the public.
This move is expected to greatly reduce the financial burden on the population and have little to no effect on the government’s budgetary measures, as the year-on-year production of edible oil products stands firmly at 4.5 million tonnes.
Earlier, the PVMA had written a letter to the ministries of industries and finance to address the issue of regulatory oversight pertaining to the rates of essential food items in the market. The Association explained that the price of edible oil products couldn’t be reduced because of high palm oil prices and the continuous depreciation of the PKR.
However, before considering price cuts, the PVMA requested the government to readdress the new taxes imposed on ghee and oil in the FY22 budget and to strictly monitor retailers who were robbing customers. It should also be noted that the price of palm oil spiked in the international markets earlier this year, which in turn caused the prices of ghee and cooking oil in Pakistan to skyrocket to Rs. 300 and Rs. 350 per kilogram, respectively.
Now, the Federal Bureau of Revenue (FBR) has issued a directive to concerned divisions in this regard. With immediate effect, the 3 percent sales tax on the industry has been removed, and the masses will now be able to buy ghee and cooking oil at affordable rates.