Petrol pumps in Pakistan to remain closed on July 5

The Petroleum Dealers Association (PPDA) announced the closure of petrol pumps nationwide on July 5 (Friday), as the talks between the association and the government over controversial tax wrapped up with no solution.

The dealers gave a call for a nationwide strike against the government's decision to impose a 0.5pc advance turnover tax in the budget 2024-25.

In the precautionary measures, the government directed the oil marketing companies (OMCs) to ensure sufficient availability of petrol at the stations they own so that the supply disruption to the public and industries could be avoided during the strike.

Two separate delegations of PPDA, led by Abdul Sami Khan from Karachi and Hassan Shah from Lahore, met Federal Board of Revenue (FBR) Chairman Amjed Zubair Tiwana.

Chairman FBR assured petroleum dealers and pump operators of the withdrawal of tax and acknowledged that the tax was imposed "mistakenly". 

Tiawana agreed that it was double taxation as outlets were already paying advance fixed withholding tax at Rs1.4 per litre.

Separately, Petroleum Secretary Momin Agha clarified that the turnover tax was imposed through the Finance Act 2024-25, passed by parliament and endorsed by President Asif Ali Zardari.

He added higher taxes were imposed on all, including the salaried class.

Abdul Sami Khan, the PPDA leader, also met the finance minister to brief him on the issue and said "they were left with no option except to shut down the business".

He said the smuggling of petroleum products continues from the Pakistan and Iran border, but "nobody was paying attention to address the issue".