The Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide strike starting July 5. This action is in protest against the newly implemented 0.5% advance tax on turnover, included in the federal budget for 2024-25.
The PPDA claims that this tax will severely harm their businesses, which are already struggling due to high taxes and inflation.
PPDA Chairman Abdul Sami Khan stated that the strike might extend beyond one day and advised dealers to keep their petrol pumps stocked until July 4. He also urged citizens to fill their vehicles before the strike begins.
“We met with the finance minister, the chairman of the FBR, officials of the Petroleum Division, chairman of OGRA, and DG Oil, DG Explosive but the talks yielded no results, which is why we are striking. Double taxation is a violation of the Constitution,” Khan said.
Khan emphasized the low profit margins for dealers due to high inflation and taxes, calling the additional tax burden unsustainable for their businesses.
The strike will involve 13,000 dealers shutting down their petrol pumps on July 5.
Khan warned that if the government does not reverse its decision, dealers might permanently close their businesses. “The additional burden of taxes will destroy our business. There is no other option but to close the business because of this unfair tax,” he stated.
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Pakistan’s $67.76 billion budget for the fiscal year 2024-25, which took effect on July 1, includes a projected annual inflation rate of up to 13.5% for June. The ambitious budget, featuring a challenging tax revenue target of Rs 13 trillion ($46.66 billion), has faced criticism from both government allies and the opposition. The revenue collection target for the new fiscal year is almost 40% higher than the previous fiscal year.
Khan Urges Officials to Cancel Petrol Tax
Khan called on the prime minister, petroleum minister, and finance minister to abolish the tax to prevent devastating effects on petrol pump businesses. “We are ready to discuss our concerns and possible solutions with the government,” he said.
“We request the prime minister, petroleum minister, and finance minister to immediately abolish this tax, otherwise we will be unable to continue running our businesses.”
The PPDA remains firm in its stance, and unless the government meets their demands, the strike will commence as planned, potentially leading to nationwide fuel supply disruptions.