The Pakistan Vanaspati Manufacturers Association (PVMA) has warned that ghee and cooking oil mills across the country could shut down indefinitely. This has raised concerns about possible price hikes and a shortage in supply.

The warning comes after the Federal Board of Revenue (FBR) decided to place its officials inside ghee mills under Section 40B of the law, a move strongly opposed by PVMA.

PVMA President Umar Rehan Sheikh said that if the government doesn’t accept their demands by Friday, they will go on strike and stop the supply of ghee and cooking oil nationwide.

He criticized the FBR’s actions as harsh and harmful for business. He asked the government to remove FBR officials from the mills, cancel Section 37A, and ease the rules for digital invoicing.

Industry experts say that stopping the supply will likely increase prices, add to inflation, and create more problems in the supply chain, especially for people already facing high food costs.

Earlier this month, the FBR assured the All Pakistan Traders Association that no tax will be taken from bank deposits up to Rs200,000. This was to address rumors spreading on social media.

In a meeting with traders, FBR also said that digital invoicing won’t be forced on small shopkeepers and retailers. It will only be applied gradually to business-to-business deals between companies registered for sales tax.

FBR promised that trader representatives would be part of the digital system’s planning to make sure the process stays fair and cooperative.

Also, Sections 37A and 37B of the Sales Tax Act will not be used against small traders, and big industrialists won’t be arrested under these rules. FBR said these laws are only meant to stop fake invoices.

It was also decided that a separate meeting will be held to create a new system for handling traders’ concerns about customs raids in markets.