Petroleum dealers have declared a nationwide strike on July 5th in protest against the government’s introduction of a 0.5% advance tax in the upcoming fiscal year’s budget. Abdul Samad Khan, chairman of the Pakistan Petroleum Dealers Association (PPDA), announced this decision during a press conference and cautioned that all filling stations will stop functioning until the authorities repress the tax.
This announcement has raised worries regarding possible petrol and diesel shortages throughout the country that might extensively disrupt transport services using those fuels. Moreover, Abdul Samad Khan seriously doubts the profitability of petrol pumps if they use an advance turnover tax.
He has called on the government to step back from its position immediately to avoid closure; alternatively, he held out the possibility of extending beyond July 5th if necessary.
The National Assembly passed the Finance Bill 2024-25, which includes this tax measure, late last month under scrutiny from the IMF.
Conversely, PPDA representatives and government officials are scheduled to hold talks in Islamabad on Monday Please address these issues satisfactorily to avoid nation-widnationwidel action.
Meanwhile, amidst these developments, the Federal Government has announced an increase in petrol prices by Rs 7.45, raising it to Rs 265.61 per liter from the current Rs 258.16. Similarly, the price of HSD will rise by Rs 9.56, now costing consumers Rs 277.45 per liter, up from the previous Rs 267.89.
Moreover, critics have lambasted proposals to increase the petroleum levy by 50% on high-octane and light diesel, as well as ethanol, and to hike the levy by one-third on various other products, posing challenges for the oil industry and consumers.
Given that negotiations between PPDA and Pakistani state officials are ongoing, economic stability and public welfare in Pakistan are in doubt.
