KARACHI: The Pakistan Petroleum Dealers Association (PPDA) on Monday expressed concerns over the 0.5 per cent advance tax on turnover in the budget and announced to call a strike on July 5, 2024 if the decision was not reversed.
Chairperson of the PPDA Abdul Sami Khan at a press conference said that the Finance Bill imposes a 0.5 per cent advance tax on turnover, as mentioned in Section 236H of the Income Tax Ordinance, 2001. “We express our concerns over the implementation of this tax, particularly its impact on the petrol pump business,” he said, adding that the sector is already operating with minimal profit margins and struggling to cope with high inflation rates.
“This additional tax burden will significantly affect the financial stability of our business and place a considerable strain on the entire commercial sector,” he said.Sami noted that every transaction for the cost of goods sold is already taxed at the time of purchase and is reflected in the books of account of oil marketing companies (OMCs) and dealers. Therefore, he sought the removal of this clause from the Finance Bill and demanded a prompt resolution of this issue.“If a timely solution is not found, we will have no choice but to close our businesses due to the imposition of this unfair tax under the current circumstances,” he said.
He said that a PPDA delegation will meet with government authorities on Tuesday and explain its concerns in more detail, dis0cussing possible solutions. “We urge the prime minister of Pakistan, the minister of petroleum, and the minister of finance to abolish this advance income tax for petroleum dealers immediately,” he said.If this issue is not resolved within the next four days, we will be unable to continue our operations, he said.