Govt withdraws advance turnover tax on petroleum dealers

ISLAMABAD: The federal government withdrew the advance tax imposed on petroleum dealers after successful talks with their association, ARY News reported.

According to a notification, 0.5 percent additional withholding tax on petrol pumps has been abolished.

The government had imposed a 0.5 percent withholding tax per litre on petrol pumps in the budget 2024-25, in addition to the 12.5 percent withholding tax that petrol pumps were already paying on their margins.

Earlier in the day, the Pakistan Petroleum Dealers Association announced the end of their strike and the reopening of petrol pumps across the country.

The association leader, Abdul Sami Khan said that they would go on strike again, If their demands are not met. Abdul Sami Khan said that there is no groupism among petroleum dealers,.

He said that the government’s decision to impose a tax of Rs 1 million petrol pump is not acceptable.

“Finance Minister Muhammad Aurangzaib assured us that our issues will be resolved, but our demands have not been met yet,” he added

Abdul Sami Khan said with the ending of the strike, fuel pumps will be reopened across Pakistan.

It is pertinent to mention here that Karachi faced fuel shortage as the stock of petroleum products has run out due to the strike of the Pakistan Petroleum Dealers Association.

As per details, the fuel stations in Karachi and across Pakistan were shutdown on the call of the PPDA from 6 AM today.

According to sources, the supply of petroleum products from Pakistan State Oil (PSO) and other oil marketing companies’ terminals is ongoing.

Meanwhile, the Oil Tanker Owners Association has distanced itself from the petroleum dealers’ strike. Railways, airports, power plants are being supplied fuel, said Oil Tanker Owners Association President Shams Shahwani.

On Thursday, Pakistan State Oil (PSO) announced that the supply of petroleum products will be ensured across the country.

PSO confirmed that its supply chain is fully operational, guaranteeing that petrol pumps would remain stocked despite the strike.