Islamabad [Pakistan], The Pakistan Petroleum Traders Association (PPDA) announced that negotiations with provincial and federal authorities had reached a deadlock, prompting them to declare a nationwide strike from today, Dawn reported.
PPDA Chairman Abdul Sami Khan expressed frustration over the lack of resolution despite extensive dialogue with government officials. "They asked us to call off the strike and assured us that we would resolve the issue, but we cannot delay our action based on mere assurances," Khan said in an interview with Dawn.
Khan revealed that he had engaged with a spectrum of stakeholders within the government, including senior officials such as the finance minister, the chairman of the Federal Board of Revenue (FBR), the head of the Oil and Gas Regulatory Authority ( Ogra), the secretary of petroleum, and representatives of the advisory council of the oil marketing companies. However, he regretted that the major concerns of traders remained unresolved.
"We will not hold further talks with the government until the unfair turnover tax is removed," Khan said, stressing that the imposition of double taxation is not only unfair but also unconstitutional.
The PPDA president outlined the logistical implications of the strike, stating that more than 13,000 gas stations across the country would cease operations starting at 6 a.m. on July 5. He warned that, unless his demands were met and formally notified, the strike could extend beyond its initial duration. closure, as reported by Dawn.
Khan called on gas station owners and operators to ensure adequate fuel storage ahead of July 4, preparing for the imminent disruption.
In response to the impending strike, the petroleum division took proactive measures by establishing a monitoring cell to monitor the fuel supply chain and coordinate with relevant stakeholders. Representatives of the oil marketing companies (OMC), Ogra and the oil division were designated as focal points within the monitoring cell.
To mitigate public nuisance and potential disruption to industry operations, the petroleum division issued directives to OMCs to maintain sufficient stocks of petroleum products at designated sites. This preventive measure was aimed at ensuring an uninterrupted supply chain during the strike period.
The controversy arises from the recent introduction in the budget of a turnover tax, which petrol traders say constitutes double taxation. They maintain that existing tax obligations, including a flat withholding tax and now an additional 0.5 percent turnover tax, unfairly burden their operations.
The FBR Chairman's earlier assurances on abolition of turnover tax were noted, albeit with the caveat that reversing this decision would require legislative amendments. As clarified by the Petroleum Secretary, the imposition of turnover tax had already been formalized through the Finance Bill 2024-25, requiring a legislative process to effect any changes, Dawn reported.
PPDA Chairman Abdul Sami Khan expressed frustration over the lack of resolution despite extensive dialogue with government officials. "They asked us to call off the strike and assured us that we would resolve the issue, but we cannot delay our action based on mere assurances," Khan said in an interview with Dawn.
Khan revealed that he had engaged with a spectrum of stakeholders within the government, including senior officials such as the finance minister, the chairman of the Federal Board of Revenue (FBR), the head of the Oil and Gas Regulatory Authority ( Ogra), the secretary of petroleum, and representatives of the advisory council of the oil marketing companies. However, he regretted that the major concerns of traders remained unresolved.
"We will not hold further talks with the government until the unfair turnover tax is removed," Khan said, stressing that the imposition of double taxation is not only unfair but also unconstitutional.
The PPDA president outlined the logistical implications of the strike, stating that more than 13,000 gas stations across the country would cease operations starting at 6 a.m. on July 5. He warned that, unless his demands were met and formally notified, the strike could extend beyond its initial duration. closure, as reported by Dawn.
Khan called on gas station owners and operators to ensure adequate fuel storage ahead of July 4, preparing for the imminent disruption.
In response to the impending strike, the petroleum division took proactive measures by establishing a monitoring cell to monitor the fuel supply chain and coordinate with relevant stakeholders. Representatives of the oil marketing companies (OMC), Ogra and the oil division were designated as focal points within the monitoring cell.
To mitigate public nuisance and potential disruption to industry operations, the petroleum division issued directives to OMCs to maintain sufficient stocks of petroleum products at designated sites. This preventive measure was aimed at ensuring an uninterrupted supply chain during the strike period.
The controversy arises from the recent introduction in the budget of a turnover tax, which petrol traders say constitutes double taxation. They maintain that existing tax obligations, including a flat withholding tax and now an additional 0.5 percent turnover tax, unfairly burden their operations.
The FBR Chairman's earlier assurances on abolition of turnover tax were noted, albeit with the caveat that reversing this decision would require legislative amendments. As clarified by the Petroleum Secretary, the imposition of turnover tax had already been formalized through the Finance Bill 2024-25, requiring a legislative process to effect any changes, Dawn reported.
