After the recent petrol price hike, here comes another distressing update: There might be a fuel shortage in the country this Friday, July 5th, 2024. According to media reports, the Pakistan Petroleum Dealers Association (PPDA), which represents over 14,000 petrol pump owners across the country, is going on strike. This means most petrol stations will remain closed on the said date.
Why the Strike Is Announced?
The PPDA is unhappy with the government’s decision to add a new tax on their business. This tax is called an “advance income tax,” and it basically means the petrol pump owners have to pay taxes before they even make any money.
The association says this tax is unfair and will hurt their business, which they say is already struggling due to low profits and high inflation.
With the aim of resolving the matter, the PPDA tried to negotiate with the government to get rid of this new tax, but those talks failed. So, as a way to protest, they decided to go on strike.
On the contrary, the All-Pakistan Oil Tankers Owners Association took an interesting step, saying that they are going against the nationwide strike. Shams Shahwani, the chairman of the association, said, ” We cannot think of a strike in the present situation of Pakistan.”
This simply means that the supply of petrol will not be affected during the strike, but how would it be useful if the petrol pumps remained closed?
What to Do?
If you rely on your car to get around, it might be a good idea to fill up your tank before Friday to avoid any disruption. The strike could last for more than one day, so it’s better to be safe than sorry.
This situation could cause problems for many people in Pakistan, so hopefully, the government and the PPDA will find a solution soon.
What do you think about the up upcoming situation pertaining to fuel pumps in Pakistan? Tell us in the comments section.
I like to clarify to you that this is a case of double taxation. Petrol pumps are already taxed in advance through withholding income tax at rate of 12% of gross margin per liter through income tax ordinance 2001 section 156A.
So, please do be advised that your wording in the article gives the impression that Petrol Pump operators are not paying income tax currently which they already are. You can check it even from invoices predating 1st July, 2024 when this second or double income tax inform of another advance income tax was not imposed.
P.S. this is a tactic by OMCs to pass on their own advance tax to the Petrol pump dealers as well.
@Ameer
Advance income tax is adjustable, so it is not a double, but rather a means of ensuring that taxes are collected timely.
By the way, this measure is used as a barrier against under invoicing. Besides, passing of taxes is not a new thing and already it is practiced by all industries. For example, tax on biscuit.
Its not fair
@Amir
I agree and regret it too, but people are unfair too, they hide their incomes, earn these incomes using underhand means. For example, a cart vendor. This person is not only thieving electricity but is also parking the cart on an ungazetted spot. Ironically, this person makes a sizeable income. using infrastructure created out of tax money but is not paying even a paisa as a tax.
Please note that this man’s income is greater than PKR 75,000 per month and a salary worth PKR 70,000 per month is considered taxable, so a salaried person is paying tax, but the cart owner is not. Reason, several of them do not even hold a valid CNIC, so there is no way to trace them and bring them into system. In other words, instead of going long way, the government takes this shortcut.