Pakistanis are preparing for a significant petrol shortage as a nationwide strike of petrol pumps is scheduled to commence on July 5 (Friday). Talks between the government and the Pakistan Petroleum Dealers Association (PPDA) failed due to disputes over an advance tax issue introduced in the 2024-25 budget.
The PPDA officials indicated that their discussions with government representatives were unproductive, prompting them to proceed with the planned shutdown of fuel stations across the country.
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The petroleum dealers are demanding the withdrawal of the newly imposed advance income tax, arguing that it poses a severe threat to the petrol pump industry. They emphasized that the business already operates on thin profit margins amid soaring inflation rates.
Dealers expressed frustration over what they perceive as unfair taxation, citing the burden of double taxation. They specifically pointed out the 0.5% advance tax on turnover introduced in the budget, highlighting that every transaction for commodity costs already incurs taxation at the time of purchase and is duly recorded in the accounts of oil marketing businesses and dealers.
The situation underscores growing concerns within the industry about the economic viability of operating petrol stations under current tax policies. As the strike looms, Pakistanis brace for potential disruptions in petrol supply and subsequent impacts on daily life and economic activities across the country.
