PPDA to Shut Down Petrol Pumps Tomorrow Over Advance Tax Dispute

Negotiations between the government and the Pakistan Petroleum Dealers Association (PPDA) have collapsed over the issue of advance tax, leading the association to announce a nationwide shutdown of fuel stations on Friday (tomorrow), according to The News.

Abdul Sami Khan, Chairman of the PPDA, stated, “We met with government officials in Islamabad, but the talks produced no results. Therefore, we will proceed with the strike as previously announced.”

The PPDA is demanding the withdrawal of the advance income tax imposed in the 2024-25 budget, arguing that the tax would devastate the petrol pump business. The dealers explained that they are already operating on slim profit margins amid high inflation.

Khan emphasized that the unfair tax would force them to close their businesses, as “there is no way in the world to run fuel stations at a loss with double taxation.”

The PPDA voiced concerns about the budget’s 0.5% advance tax on turnover, highlighting that every transaction for the cost of commodities sold is already taxed at the time of purchase and recorded in the accounts of oil marketing businesses and dealers.

As a result, the PPDA is requesting the removal of this clause from the finance bill as soon as possible to prevent further financial strain on the petroleum sector.