Petrol dealers set to go on strike from tomorrow (July 5)

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike of petrol stations on July 5 (Friday) after its talks with provincial and federal governments failed.

13,000 petrol stations would be closed nationwide from July 5 at 6 am onward, the PPDA chairman said, adding that the strike could continue over the following days unless demands were met and notified.

Petroleum dealers expressed concerns over the 0.5 percent advance turnover tax included in the Finance Bill 2024-25.

PPDA chairman Abdul Sami Khan said that the government asked us to call off the strike and promised to resolve the issue but we cannot postpone the strike on mere assurances, adding that he had contacted almost every stake in the government.

While talking to a local publication, Abdul Sami added that he met the finance minister, chairman of the Federal Board of Revenue, Oil and Gas Regulatory Authority chief, petroleum secretary, and representatives of the oil marketing companies’ advisory council, but dealers’ complaints remained unaddressed.

Furthermore, the petroleum dealers’ representative said, there would be no more talks with the government till the ‘unfair’ turnover tax was withdrawn. “Double taxation was not only cruel but unconstitutional as well.”

The dealers are protesting against the imposition of turnover tax in the recent federal budget. They argue that outlets were already paying advance fixed withholding tax at Rs1.4 per litre (about 12pc of dealer commission) as final income tax and had been subjected to double taxation in the shape of 0.5pc advance turnover tax now because of the definitional issue of ‘dealers and distributors’.