On July 5, Pakistan will experience a nationwide shutdown of petrol stations as the Pakistan Petroleum Dealers Association (PPDA) protests the government’s new advance tax policy. This move, led by PPDA Chairman Abdul Samad Khan, is in direct response to the 0.5% advance turnover tax introduced in the Finance Bill 2024-25.
Reason for the Strike
Chairman Abdul Samad Khan has expressed that the new tax renders the operation of petrol stations financially unfeasible. He has called on the government to immediately revoke the tax or face a nationwide halt in fuel supplies. According to Khan, the additional tax is a significant financial burden that the dealers cannot sustain.
Declining Sales and Financial Strain
The dealers have reported declining sales, and they argue that the new tax exacerbates their operational challenges. They accuse the government of imposing excessive taxes and facilitating fuel smuggling, which undermines legitimate businesses. Khan highlighted that taxes are already collected on every fuel sale, and adding more taxes is pushing the dealers to the brink of collapse.
Efforts for Resolution
In a bid to resolve the issue, a delegation from the PPDA is set to meet with the Finance Minister, Petroleum Minister, and the Chairman of the Federal Board of Revenue (FBR) in Islamabad. The PPDA hopes that these talks will lead to a satisfactory resolution. However, if the government does not address their concerns, the planned shutdown will proceed as scheduled.
Impact of the Strike
The strike is expected to have a significant impact on the daily lives of Pakistanis, as the halt in fuel supplies will disrupt transportation and various other sectors reliant on petrol and diesel. The PPDA’s decision underscores the critical financial strain faced by petrol dealers in light of the new tax policy.
Key Points:
- Date: July 5
- Reason for Strike: Protest against the 0.5% advance turnover tax in the Finance Bill 2024-25
- Organized by: Pakistan Petroleum Dealers Association (PPDA)
- Key Figure: PPDA Chairman Abdul Samad Khan
- Government Response: Pending talks with Finance Minister, Petroleum Minister, and FBR Chairman
Stay tuned for updates as the situation unfolds and the outcome of the negotiations is revealed.
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