- Nationwide protest on July 5 following the imposition of a 0.5% advance turnover tax
- Government acknowledges mistake, promises to withdraw the tax soon
- Directs OMCs to ensure adequate stock at company-run stations
ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has announced a countrywide strike on July 5 to protest the 0.5% advance turnover tax introduced in the latest budget. Despite the government’s acknowledgment of the error and assurance of the tax’s withdrawal, the PPDA remains steadfast in its protest plans.
In response, the government has instructed oil marketing companies (OMCs) to maintain adequate petroleum product stocks at company-operated stations to avoid supply disruptions and public inconvenience.
Two PPDA delegations, led by Abdul Sami Khan from Karachi and Hassan Shah from Lahore, met with Federal Board of Revenue (FBR) Chairman Amjed Zubair Tiwana. Mr. Tiwana assured them that the tax imposition was an error and would be corrected within two days. He acknowledged that the dealers were already subject to an advance fixed withholding tax, making the turnover tax a case of double taxation.
Petroleum Secretary Momin Agha met with OMC representatives, noting that the turnover tax was part of the Finance Act 2024-25. He emphasized that higher taxes were a universal issue, not unique to petroleum dealers.
Abdul Sami Khan announced the strike at a press conference, stating that the new tax would devastate petroleum retailers, who already operate on thin margins amidst high inflation. He urged the government to address the smuggling of petroleum products from the Pakistan-Iran border.
Hassan Shah confirmed the FBR’s assurance to remove the tax, stressing that OMCs would begin issuing tax-inclusive invoices if the tax is not abolished within the next few days. If unresolved, dealers plan to close fuel stations nationwide.
Story by Khaleeq Kiani
