Advance tax discord: PPDA announces to shut down petrol pumps today

• Petroleum dealers say tax to ruin petrol pump business.
• PPDA requests clause to be removed from finance bill.
• Sami Khan says none listened to them on smuggling of oil. 

Following the collapse of negotiations between the government and the petroleum dealers over the issue of advance tax, the association has announced to shut down all fuel stations on Friday (tomorrow), The News reported.

Chairman Pakistan Petroleum Dealers Association (PPDA) Abdul Sami Khan said: "We met with government officials in Islamabad, but the talks produced no results, hence, we will go on strike as announced earlier."

Demanding withdrawal of the advance income tax imposed in the budget 2024-25, the petroleum dealers said the tax would ruin the petrol pump business. They said they were already running the business with a low profit margin, amid high inflation.

Khan said they would be forced to shut their business because of the unfair tax, as there was “no way in the world to run fuel stations in loss with double taxation”.

Voicing concerns about the budget's 0.5% advance tax on turnover, the PPDA pointed out that every transaction for the cost of commodities sold is already taxed at the time of purchase and is recorded in the books of account of oil marketing businesses and dealers.

Therefore, the PPDA requested, the clause should be removed from the finance bill as soon as possible.

Addressing a press conference on Tuesday, the PPDA chairman said he had told the Ministry of Finance that they should not be dealt like other sectors. He also warned of severe consequences, if their businesses came to an end.

Expressing reservations over oil smuggling in the country, Khan said they contacted all the relevant departments over smuggling of oil from Iran, but none listened to them.

He said they wanted the government to sign an agreement with Iran and impose tax on its oil as it was the government’s responsibility to check the smuggling.