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Karachi: The Pakistan Petroleum Dealers Association has announced that if the advance tax is not withdrawn, they will shut down operations across the entire country on July 5.
Abdul Sami Khan, chairman of the Pakistan Petroleum Dealers Association, stated in a press conference that petroleum dealers are deeply concerned about the advance turnover tax included in the finance bill.
“A 0.5% advance turnover tax has been levied in the finance bill. It is impossible to run a petrol pump business with this tax. The government should revise the advance tax and abolish it immediately, otherwise, we will have no option but to close our businesses. Oil marketing companies are prioritizing their own interests,” said Abdul Sami Khan.
The chairman further criticized the government for imposing taxes on everything, which has led to a decrease in petroleum dealers’ sales. He accused the government of supporting smuggling and stated that those who speak out against smuggling face threats. He highlighted that every transaction cost of goods sold is already taxed at the time of purchase.
“A delegation of petroleum dealers is going to Islamabad today to try to meet with the Finance Minister, Petroleum Minister, and the Chairman of the FBR. If the issues are not resolved, we will shut down pumps in the entire country on July 5,” he added.
Abdul Sami Khan also pointed out that petrol pumps are already operating with very low profit margins, and this levy will further increase the rate of inflation. “This additional burden of advance tax will affect our business. The implementation of advance tax will also increase the burden on the commercial sector,” he concluded.