ISLAMABAD: Petroleum dealers in Pakistan have issued a firm ultimatum to shut down all filling stations nationwide on July 5 unless the government withdraws its decision to impose a 0.5% advance tax.
This warning comes amidst a recent hike in petrol prices by Rs 7.45 per litre for the upcoming fortnight.
Abdul Sami Khan, chairman of the Pakistan Petroleum Dealers Association (PPDA), voiced grave concerns during a press conference about the newly imposed 0.5% advance turnover tax on petroleum dealers, asserting that it will render their business unsustainable. He said that failure to take the decision back would compel them to cease operations countrywide.
The PPDA chief criticized the government’s tax policies, attributing a decline in sales of petroleum products to excessive taxation. He also accused the government of tacitly supporting smuggling activities and intimidating critics.
In response to these developments, a delegation of petroleum dealers will visit Islamabad to seek meetings with the Finance Minister, Petroleum Minister, and Chairman of the Federal Board of Revenue (FBR).
Meanwhile, the Finance Division issued an official notification on Sunday setting the new petrol price at Rs 265.61 per litre, marking an increase of Rs 7.45. Similarly, the price of high-speed diesel (HSD) rose by Rs 9.56 to Rs 277.45 per litre.
The increase in fuel prices may further exacerbate inflationary pressures, particularly if the government decides to raise the Petroleum Development Levy (PDL) from its current rate of Rs 60 per litre.
