(Web Desk Monitoring) — The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike on July 5 after unsuccessful negotiations with the government over a turnover tax deemed unfair and unconstitutional by the dealers.
Over 13,000 petrol stations are expected to close as part of the strike. Although the government has established a monitoring cell to manage the situation, reversing the tax requires legislative action.
PPDA Chairman Abdul Sami Khan stated, “They asked us to call off the strike and promised to resolve the issue, but we cannot postpone the strike on mere assurances.” Despite meetings with various government officials, including the finance minister, the Chairman of the Federal Board of Revenue, the Oil and Gas Regulatory Authority chief, the petroleum secretary, and representatives of the oil marketing companies’ advisory council, the dealers’ concerns were not addressed.
Mr. Khan emphasized that there would be no further talks with the government until the “unfair” turnover tax was withdrawn. He noted that petrol stations would begin running out of fuel on Thursday and labeled the double taxation as cruel and unconstitutional. He announced that over 13,000 petrol stations will close from 6 am on July 5, and the strike could continue until their demands are met and officially acknowledged. He urged retail outlet owners and operators to save their stocks for July 4.
In response, the Petroleum Ministry has set up a monitoring cell to oversee fuel supplies and coordinate with stakeholders during the strike. Representatives from oil marketing companies, the Oil and Gas Regulatory Authority, and the petroleum division have appointed focal persons for this cell. The ministry has also issued directives to oil marketing companies to ensure sufficient stocks of petroleum products at company-owned or operated sites to avoid supply chain disruptions and inconvenience to the public and industry.
The dealers are protesting the turnover tax imposed in the recent budget, arguing that they already pay an advance fixed withholding tax of Rs. 1.4 per liter (about 12% of dealer commission) as final income tax. The new 0.5% advance turnover tax results from a definitional issue of “dealers and distributors,” constituting double taxation. The Federal Board of Revenue chairman assured the dealers that the turnover tax would be withdrawn, but the process is lengthy. The petroleum secretary explained that the tax was imposed through the Finance Act 2024-25, which was passed by parliament and endorsed by the president. Reversing it requires a legislative process.
