The Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide strike commencing on July 5, leading to the closure of petrol pumps across the country. This drastic measure is a direct response to the government’s imposition of a 0.5 percent advance turnover tax, which the association demands to be revoked immediately.
During a press conference, Abdul Sami Khan, Chairman of the PPDA, elucidated the severe repercussions of the newly introduced tax, included in the recent budget. Khan stressed that the petrol pump business, already operating on slim profit margins, would find it nearly impossible to sustain operations under the added financial burden, particularly amidst prevailing high inflation.
“The current economic conditions are already challenging for our business, and this new tax could be catastrophic. Closing our operations seems to be the only viable option if the tax is not withdrawn,” Khan asserted. He also mentioned that despite discussions with the finance minister, the association’s concerns were not satisfactorily addressed.
Representing 14,000 dealers nationwide, the PPDA has issued a four-day ultimatum to the government for the abolition of the advance income tax. Failure to meet this demand will result in stringent actions, beginning with the July 5 strike, during which petrol pumps across the nation will halt their operations.
The PPDA’s decision underscores the critical state of the petrol pump industry and its struggle to cope with economic pressures. The association urges the government to reconsider the tax policy to avoid exacerbating the financial difficulties faced by the sector and to prevent the widespread disruption that the strike would entail.