Petrol Dealers In Pakistan To Hold Nationwide Strike Amid Tax Dispute

The Pakistan Petroleum Dealers Association (PPDA) declared a statewide strike to begin today after announcing that talks with federal and provincial officials had come to a standstill.

Abdul Sami Khan, the head of the PPDA, voiced his dissatisfaction with the lack of progress after holding lengthy discussions with government representatives. In an interview with Dawn, Khan said, “They asked us to call off the strike and assured us of resolving the issue, but we cannot delay our action based on mere assurances.”

Khan revealed that he had communicated with a wide range of government stakeholders, including high-ranking officials like the finance minister, the chairman of the Federal Board of Revenue (FBR), the chief of the Oil and Gas Regulatory Authority (Ogra), the petroleum secretary, and members of the advisory council for oil marketing companies. But he bemoaned the fact that the dealers’ primary concerns went unanswered.

“We will not entertain further discussions with the government until the unjust turnover tax is withdrawn,” asserted Khan, underscoring that the imposition of double taxation was not only unfair but also unconstitutional.

In outlining the strike’s logistical ramifications, the PPDA chairman said that more than 13,000 gas stations nationwide would close at 6 a.m. on July 5. According to Dawn, he issued a warning, saying that if their requests were not fulfilled and they were not officially informed, the walkout might go beyond the first stoppage.
Khan urged owners and operators of gas stations to make sure that sufficient gasoline supplies be stocked by July 4 in order to prepare for the upcoming disruption.

The petroleum division established a monitoring cell to keep an eye on the gasoline supply chain and communicate with pertinent parties in anticipation of the upcoming strike. Within the monitoring cell, focal personnel were designated from the petroleum division, Ogra, and oil marketing corporations (OMCs).
The petroleum division sent instructions to OMCs to keep adequate supplies of petroleum products at specified locations in order to minimize inconvenience to the general public and possible disruptions to industrial activities. The goal of this preventative action was to guarantee a continuous supply chain throughout the strike.

Fuel dealers claim that the turnover tax introduced in the most recent budget amounts to double taxation, which is the source of the problem. They argue that current tax laws unfairly impede their ability to conduct business, including a set withholding tax and the recently implemented 0.5% turnover tax.

It was acknowledged that the FBR chairman had previously given promises on the removal of the turnover tax, but he said that changing this decision would require changes to the law. Dawn stated that the petroleum secretary had emphasized that the Finance Act 2024–25 had already formalized the introduction of the turnover tax and that any adjustments would need to go via the legislative procedure.

Disclaimer: The article is taken from a syndicate source.