ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike from July 5 against the 0.5% advance tax on turnover, as stated in the recently passed federal budget for 2024-25.
The PPDA warns that this tax will severely impact their already struggling businesses, which are reeling from high taxes and inflation.
PPDA Chairman Abdul Sami Khan said that the strike could extend beyond one day and advised dealers to keep fuel stocked at petrol pumps until July 4. He urged citizens to fill their vehicle tanks before the strike begins.
“We met with the finance minister, the chairman of the FBR, officials of the Petroleum Division, chairman of OGRA, and DG Oil, DG Explosive but the talks yielded no results, which is why we are striking. Double taxation is a violation of the Constitution,” Khan stated.
He highlighted the minimal profit margins for dealers due to staggering inflation and high taxes, describing the additional tax burden as unsustainable for the petrol pump business.
The strike involves 13,000 dealers who will shut down their petrol pumps on July 5.
Khan warned that if the government does not reverse its decision, dealers may have no choice but to permanently close their businesses.
“The additional burden of taxes will destroy our business. There is no other option but to close the business because of this unfair tax,” he asserted while talking to Profit.
Pakistan’s tax-heavy $67.76 billion budget for the fiscal year 2024-25 came into effect on July 1, with an annual inflation projection of up to 13.5% for June. The ambitious budget, which includes a challenging tax revenue target of Rs 13 trillion ($46.66 billion), has drawn criticism from both government allies and the opposition. The revenue collection target for the new fiscal year is almost 40% higher than the last fiscal year.
Khan called on the prime minister, petroleum minister, and finance minister to immediately abolish the tax to prevent the devastating impact on petrol pump businesses. “We are ready to discuss our concerns and possible solutions with the government,” he said.
“We request the prime minister, petroleum minister, and finance minister to immediately abolish this tax, otherwise we will be unable to continue running our businesses.”
It is pertinent to mention that the PPDA has so far remained firm in its stance, and unless the government accedes to their demands, the strike will commence as scheduled, leading to a potential nationwide disruption in the fuel supply.
