Petroleum Retailers Get Relief as Govt Withdraws Controversial Tax

Islamabad(Mudassar Iqbal); Petroleum Retailers Get Relief as Govt Withdraws Controversial Tax.

The Pakistan Petroleum Dealers Association (PPDA) has successfully persuaded the government to retract its decision to impose a 0.5 percent advance turnover tax on petroleum retailers, citing it as a form of double taxation.

The PPDA delegation engaged in extensive discussions with top government officials, including Minister of State for Finance & Revenue Ali Pervez Malik and Federal Board of Revenue (FBR) Chairman Amjed Zubair Tiwana, to highlight the adverse impact of the tax measure. They argued that petroleum outlets were already subject to a fixed withholding tax, making the additional turnover tax unjustifiable.

Hassan Shah, spokesman for PPDA, emphasized that while dealers supported efforts to enhance revenue collection, the newly introduced tax would have severely strained the viability of petrol pumps already operating on slim margins amidst record inflation.

Following deliberations, the Ministry of Energy sought clarification from FBR regarding the applicability of the Income Tax Ordinance’s section 236H to dealers. In response, FBR’s Secretary Income Tax Policy, Muhammad Sajid Ahmad, clarified that the tax collection under section 236H did not apply to retail outlets under the Final Tax Regime.

Strike or No Strike, Petroleum Products Will Be Available: Govt
Expressing satisfaction with the resolution, Shah praised the majority of dealers for their constructive approach and criticized a minority for advocating strikes over dialogue. PPDA leaders Nauman Butt, Nadeem Aziz Khan, Khawaja Atif Ahmad, Humayun Khan, and Zaheer Ahmed Paracha commended government officials for their cooperation and expressed optimism for future engagements.

In conclusion, Shah affirmed that ongoing dialogue remained preferable to disruptive demonstrations, underscoring the importance of collaborative efforts in addressing industry concerns.
The government’s swift response and willingness to reconsider demonstrate a commitment to fostering a conducive business environment amidst economic challenges.

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