ISLAMABAD: The federal government has withdrawn the advance tax imposed on petroleum dealers after successful negotiations with their association.
According to a notification, the 0.5 percent additional withholding tax on petrol pumps has been abolished. This tax was initially imposed in the 2024-25 budget, adding to the existing 12.5 percent withholding tax that petrol pumps were already paying on their margins.
Earlier today, the Pakistan Petroleum Dealers Association (PPDA) announced the end of their strike and the reopening of petrol pumps across the country. Association leader Abdul Sami Khan stated that they would go on strike again if their demands are not met. He emphasized that there is no division among petroleum dealers.
Khan criticized the government’s decision to impose a tax of Rs 1 million per petrol pump, calling it unacceptable. He added that while Finance Minister Muhammad Aurangzaib assured them their issues would be resolved, their demands have not been fully met yet.
Khan confirmed that with the end of the strike, fuel pumps will be reopened across Pakistan.
It is important to note that Karachi experienced a fuel shortage due to the strike, as the stock of petroleum products had run out. Fuel stations in Karachi and across Pakistan were shut down from 6 AM today following the PPDA’s call for a strike.
Despite the strike, the supply of petroleum products from Pakistan State Oil (PSO) and other oil marketing companies continued. The Oil Tanker Owners Association distanced itself from the petroleum dealers’ strike, ensuring fuel supply to railways, airports, and power plants, according to its President Shams Shahwani.
On Thursday, PSO announced that the supply of petroleum products would be ensured nationwide. PSO confirmed that its supply chain remained fully operational, guaranteeing that petrol pumps would remain stocked despite the strike.
