Cooking oil and ghee prices may rise in July 2025

The Pakistan Vanaspati Manufacturers Association (PVMA) has warned that ghee and cooking oil mills across the country may shut down indefinitely. This has raised fears of price hikes and supply shortages in the coming days.

The warning came after the Federal Board of Revenue (FBR) decided to post its officials at ghee mills under Section 40B of the law. PVMA President Umar Rehan Sheikh called this move “unfriendly for business” and said the government must withdraw it.

He also demanded:

• Removal of FBR officials from factories.

• Ending Section 37A.

• Relaxing digital invoicing rules.

Sheikh warned that if their demands are not met by Friday, the association will go on an indefinite strike, halting the supply of ghee and cooking oil nationwide. This could lead to price increases and more inflation, which would directly hurt consumers already struggling with high food costs.

Earlier this month, the FBR met with the All Pakistan Traders Association to clear up some tax-related concerns. The FBR assured traders that:

• No tax will be deducted on bank deposits up to Rs200,000.

• Digital invoicing will not apply to small traders and retailers for now; it will be introduced gradually for larger businesses only.

• Traders will be included in a committee for digitalization to ensure cooperation and transparency.

The FBR also clarified that Sections 37A and 37B of the Sales Tax Act will not apply to small traders, and large industrialists will not be arrested under these clauses. They said these laws are only meant to stop fake invoices.

A separate meeting will also be held to address concerns about customs raids in marketplaces.

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