Petroleum Dealers in Pakistan Plan Nationwide Shutdown Over Tax Dispute

On July 5, petroleum dealers in Pakistan are set to initiate a nationwide shutdown in protest against the government's recent implementation of a 0.5% advance turnover tax as part of the Finance Bill 2024-25. The Pakistan Petroleum Dealers Association (PPDA) has voiced strong opposition to this tax, citing its detrimental impact on the financial viability of operating petrol pumps.

The chairman of the PPDA, Abdul Samad Khan, has raised concerns regarding the adverse effects of the advance tax on their businesses. He has underscored the need to consider the interests of oil marketing companies and criticized the government's decision to impose taxes on various segments of the petroleum industry.

Samad pointed out that the sales of petroleum dealers have witnessed a decline due to the increased tax burden, alleging that such measures indirectly facilitate smuggling activities. He has questioned the rationale behind imposing additional taxes on their operations, noting that taxes are already imposed on every transaction of goods sold.

In response to these developments, the association members are scheduled to hold discussions with the Finance Minister, Petroleum Minister, and FBR Chairman in Islamabad to address their grievances. However, they have issued a warning that if their demands are not met, they will proceed with the planned nationwide shutdown on July 5.

The impending nationwide shutdown by petroleum dealers in Pakistan underscores the escalating tensions between the industry stakeholders and the government over the imposition of the advance turnover tax. The outcome of the upcoming discussions between the association members and government officials will be crucial in determining the resolution of this issue and its implications for the petroleum sector in the country.