PPDA announces that petrol pumps will be closed tomorrow

• Oil marketers say the tax will destroy the gas pump business.
• The PDDA requests that the clause be removed from the financial bill.
• Sami Khan says no one heard them about oil smuggling.

Following the collapse of negotiations between the government and oil marketers over the advance tax issue, the association has announced that it will close all petrol stations on Friday (tomorrow). The news mentionted.

Pakistan Petroleum Dealers Association (PPDA) President Abdul Sami Khan said, “We have met with government officials in Islamabad but the talks did not yield results, therefore we will go on strike as announced earlier.”

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

Khan said they would be forced to close down their business due to the unfair tax as “there is no way in the world that petrol stations can operate at a loss with double taxation”.

Expressing concerns about the advance tax of 0.5% of the budget on turnover, the PDDA pointed out that every transaction for the cost of goods sold is already taxed at the time of purchase and recorded in the books of accounts of oil trading companies and dealers.

Therefore, the PDDA requested that the clause be removed from the Finance Bill as soon as possible.

Addressing a press conference on Tuesday, the PDD chairman said he told the Finance Ministry that they should not be treated like other sectors. He also warned of serious consequences if their businesses were terminated.

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

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