The Pakistan Petroleum Dealers Association (PPDA) on Tuesday announced a nationwide strike for July 5 (Friday) in protest against the imposition of 0.5% advance turnover tax in the Finance Bill 2024-25, warning they will not reopen fuel pumps unless the tax is withdrawn.
While efforts to resolve the impasse are ongoing, authorities have taken notice and directed oil marketing companies to ensure the availability of sufficient stocks at company-owned or –operated facilities to avoid disruption of the supply chain and ensure continuity of services for the general public and industry if the strike proceeds as planned.
Addressing a press conference, PPDA representative from Karachi Abdul Sami Khan announced that pumps would remain closed on July 5 unless the government removed the controversial turnover tax. He claimed the new tax would severely impact the operational expenses of petroleum retailers, lamenting that months of inflation had already hampered the retail business.
Khan claimed he had met Finance Minister Muhammad Aurangzeb and briefed him on the issue, adding dealers had a choice between closing their businesses or operating at unviable losses. He also criticized the government’s failure to address smuggling of petroleum products from Iran.
Another PPDA representative, Hassan Shah of Lahore, also announced his support for the strike. However, he claimed the FBR chief had assured his delegation that the turnover tax would be removed as soon as possible. He reiterated the warning that if the tax were not abolished within 10 days, dealers would be left with no option but to close fuel stations.
In separate meetings, both Khan and Shah met FBR Chairman Amjed Zubair Tiwana, who reportedly assured them the tax would be withdrawn, as petroleum dealers were “mistakenly” added to the category of retailers facing the tax. The petroleum dealers claim the new tax is a form of “double taxation” for them, as they are already paying advance withholding tax of Rs. 1.4/liter.