ISLAMABAD (May 07 2003) : The Minister for Industries and Production,Liaquat Ali Jatoi is likely to ask the Finance Ministry to withdrawGeneral Sales Tax on ghee and cooking oil and also give relief in otherlevies, official sources told Business Recorder .

Liaquat Ali Jatoi, however asked, the ghee manufacturers to ensure qualityproducts and maintain proper quantity/quality in the packing.

He said this while presiding over a meeting with a delegation of PakistanVanaspati Manufacturers Association (PVMA) held in the Ministry onTuesday.

Jatoi said that the government would not compromise on quality of ghee andcooking oil and sale of under weight packing of this important kitchenitem at any cost.

He said there are reports that some manufacturers are getting high profitsby selling sub-standard and under weight products, which is illegal andunfair.

The government is also taking steps to control production of sub-standardghee and edible oil.

The Minister has assured the Vanaspati manufacturers that their proposalswould be considered in the next budget to protect the industry and toprovide relief to the consumers.

Sources said, PVMA had proposed that anomaly in the payment of sales taxand income tax between Fata and Pata units and units located in tariffareas should be removed.

Duty on imported edible oils should be reduced to neutralise the impact ofenhancement in the sales tax and levy of GST on vegetable ghee/cookingoils as well as increase in international market prices, besideswithdrawal of ITP value of imported tin plate so as to charge customs dutyetc on the same as per indent invoice price verified by the PVMA.

They also asked for the rationalisation of additional custom duty on theimport of vegetable ghee/cooking oil and 20% sales tax on edible oilsproduced from imported oils seeds and removal of the sub-sections (8) andthe words "other than edible oils" appearing in the bracket of sub-section(3) of section-148 of Income Tax Ordinance, 2001.

Jatoi further said that the government was committed to resolve thegenuine problems of all the manufacturing sector in order to encourage theinvestment and to boost the economy.

He asked them that the relief in the duties and taxes should also bepassed on to the consumers.

The delegation stated that more than 150 units in the country engaged inthe manufacturing of vegetable ghee/cooking oil.

Out of these, 89 are members of PVMA with adequate facilities forrefining, bleaching, deodorisation and mixing RBD palm with other soft oilto ensure quality of the products as per Pakistan Standard Quality ControlAuthority standards. The remaining units are cottage type units in theun-organised sector.