The Pakistan Petroleum Dealers Association (PPDA) is going on a nationwide strike starting tomorrow, Friday, July 5th. They are protesting the imposition of a new 0.5% advance tax on turnover by the government. Moreover, the strike could lead to the closure of over 13,000 petrol stations across the country.
The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike starting July 5 in response to the government’s decision to impose a 0.5% advance tax on turnover. They argue this new tax will further harm their businesses, which are already struggling due to high taxes and inflation.
Authorities announced that over 13,000 petrol stations will close starting at 6 am on July 5, and the strike could continue for several days unless their demands are met and notified. He appealed to the owners and operators of retail outlets to keep their stocks for July 4.
The government, which introduced this tax in the recently passed federal budget for 2024-25, aims to increase tax revenue amid rising inflation. However, the PPDA claims that their profits are already minimal and that this additional tax could force many petrol pumps to close permanently.
“We are going on a nationwide strike starting July 5 and plan to close petrol pumps across the country,” said PPDA Chairman Abdul Sami Khan. “Our demand is simple: the government should immediately withdraw the advance tax decision.”
Government’s Reaction
In response, Imran Ahmed, the director general of oil at Pakistan’s petroleum ministry, rejected the strike, labeling it as “blackmailing tactics.” He emphasized that the new tax applies to all traders, not just petroleum dealers, and assured that the government is open to discussing genuine concerns.
“We have also instructed PSO [Pakistan State Oil] to ensure maximum supply and storage of petroleum products by keeping their sites open,” Ahmed said.
Ahmed stated that oil marketing companies will keep as many petrol stations open as possible to ensure a smooth supply of petroleum products during the strike.
In anticipation of the strike, we advise motorists to fill up their tanks today to minimize disruption caused by the closure of petrol stations.
