ISLAMABAD: The federal government has withdrawn the advance tax imposed on petroleum dealers after successful negotiations with their association.
According to an official notification, the government has abolished the 0.5 percent additional withholding tax on petrol pumps. This tax had been imposed in the 2024-25 budget, adding to the existing 12.5 percent withholding tax on petrol pump margins.
Earlier, the Pakistan Petroleum Dealers Association (PPDA) announced the end of their strike and the reopening of petrol pumps nationwide. Association leader Abdul Sami Khan emphasized that if their demands are not fully met, they are prepared to strike again. He clarified that there is no internal division among the petroleum dealers.
Khan expressed that the government’s decision to impose a tax of Rs 1 million per petrol pump was unacceptable. “Finance Minister Muhammad Aurangzaib assured us that our issues will be resolved, but our demands have not been met yet,” he stated. With the strike ending, fuel pumps are set to reopen across Pakistan.
During the strike, Karachi experienced significant fuel shortages as petroleum product stocks ran out. Fuel stations in Karachi and other parts of Pakistan were shut down from 6 AM on the PPDA’s call. Despite the strike, the supply of petroleum products from Pakistan State Oil (PSO) and other oil marketing companies’ terminals continued uninterrupted.
The Oil Tanker Owners Association distanced itself from the strike, confirming that essential sectors such as railways, airports, and power plants continued to receive fuel supplies. President Shams Shahwani of the Oil Tanker Owners Association stated that their operations were unaffected by the strike.
On Thursday, Pakistan State Oil assured the public that the supply of petroleum products would be maintained nationwide. PSO confirmed that its supply chain remains fully operational, ensuring that petrol pumps remain stocked despite the disruptions caused by the strike.
I am an accomplished graduate of Strategic Studies, driven by a fervent dedication to comprehending global affairs and devising impactful strategies. Equipped with a comprehensive skill set encompassing research, critical thinking, and persuasive communication, I possess a distinctive viewpoint and an unwavering commitment to fostering inclusive decision-making processes. As a versatile individual, I excel in collaborating with diverse groups in various settings, leveraging my strong interpersonal abilities to adapt seamlessly to new environments and surmount any challenges that arise. With a passion for contributing to strategic initiatives, I am eager to leverage my expertise and drive to effect positive change within the field.
