Petrol Pumps In Pakistan To Remain Closed Today. Here Is Why A Nationwide Stir Is On

(MENAFN- Live Mint) Petrol pumps in Pakistan remain shut from 6 a.m. today, following a nation-wide strike called by the Pakistan Petroleum Dealers Association (PPDA) after talks with the provincial and federal authorities ended in a deadlock over a new tax, the Dawn reported.

The PPDA chairman Abdul Sami Khan told the Dawn in an interview that over 13,000 petrol stations across Pakistan would remain shut until the dealers' demands were met. He appealed to petrol station owners and operators to ensure adequate stocking of petrol supplies.

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The strike comes after Shehbaz Sharif's government introduced the turnover tax in the recent budget, which, the petrol dealers argued, amounts to double taxation. The existing tax obligations, including a fixed withholding tax, along with additional turnover tax of 0.5 per cent, have become a burden for the dealers.

Abdul Sami Khan expressed his frustration at the lack of any resolution despite extensive discussions with government officials. He said that the organisation was not ready to call off the strike based on mere talks. "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 stated in an interview with Dawn.

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Several high-ranking officials were involved in the discussions, Khan told the Dawn. Chairman of the Federal Board of Revenue (FBR), Malik Amjad Zubair Tiwana, the chief of the Oil and Gas Regulatory Authority (Ogra), the petroleum secretary, and representatives from the oil marketing companies' advisory council were present in the meeting. Nonetheless, the concerns of the dealers were not paid heed to, said Khan.

Khan further asserted that the double tax regime was unfair, as well as unconstitutional. "We will not entertain further discussions with the government until the unjust turnover tax is withdrawn,"
Khan said in the interview.

In response to the strike, the Pakistan government's petrol division assigned representatives from oil marketing companies (OMCs), Ogra, to connect with stakeholders, and look after the supply chain. The petroleum division issued directives to OMCs to maintain sufficient stocks of petroleum products at designated sites.

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Earlier, Malik Amjad had assured about the withdrawal of the tax, but with legislative amendments. In the meantime, Momin Agha, the petroleum secretary, clarified that the imposition of the turnover tax was already in progress through the Finance Act 2024-25, the Dawn reported.

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