Tax Talks

KARACHI: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has strongly criticized the government’s tax exemption policy for FATA/PATA, calling it detrimental to the national economy and a major contributor to smuggling.

He stated that these exemptions are not benefiting the people of FATA/PATA but are instead being exploited to facilitate illegal trade. Certain elements are misusing this privilege to sell untaxed goods openly in local markets, putting tax-compliant industries at a severe disadvantage.

He emphasized that smuggled edible oil and ghee are being brought into other parts of the country under the guise of tax-free zones in FATA/PATA, harming legitimate businesses. Sheikh Umer Rehan urged the government to recognize the massive revenue losses caused by this policy, depriving the national exchequer of billions while negatively impacting the economy.

He called for the immediate withdrawal of these tax exemptions in the upcoming budget, warning that failure to act would push more industries into crisis. He also urged the government to take strict measures against smuggling and provide a level playing field for tax-paying businesses.

Sheikh Umer Rehan cautioned that if immediate attention is not given to this issue, both the economy and legal trade would suffer further. He reiterated the need for a fair business environment where all stakeholders have equal opportunities. Originally intended for the economic uplift of FATA/PATA, these exemptions have now become a loophole for large-scale tax evasion.

He stressed the importance of strict enforcement of tax laws and improved monitoring systems, urging the government to eliminate unfair incentives, expand the tax net, and promote transparent business policies to ensure economic stability.

Source: Business Recorder, 2025