Pakistan: Pakistan Petroleum Dealers Association (PPDA) has threatened to shutdown petrol stations all over Pakistan on July 5th, in case the government fails to revoke a recently applied 0. undefined Furthermore, PPDA Chairman Abdul Sami Khan also insisted that this tax is highly detrimental to the overall sustainability of the petrol pump businesses across the country.
Challenges Faced by Petroleum Dealers: Recently, Abdul Sami Khan in a press conference explained that the advance turnover tax was even more devastating. He stated that the extra tax measure puts even more pressure on petrol pump operators attributing this to decreasing number of sales and high operational costs. In Khan’s articles, maintaining the business operations under these conditions has become very difficult.
Government Criticism and Industry Concerns: Khan accused the government of indirectly supporting smuggling activities, and not giving adequate support to legitimate business ventures in the petroleum sub-sector. He also complained over what he termed as the government’s ill-mannered inclinations towards neglecting the industries pleas despite the pleas have been made directly to the Prime Ministerial offices. Khan also highlighted the perceived threats that the individuals in the industry have if they are to stand up against these policies.
Negotiations and Delegation Action: This comes as the crisis continues to worsen and an emergency PPDA delegation is scheduled to visit Islamabad. They are assigned the task of scheduling meetings with government officials such as the Finance Minister, the Petroleum Minister and the Chairman FBR. The fate of the proposed country-wide shutdown which is set to take place on July 5 is likely to be determined by these negotiations.
Conclusion: The impending closure of the petrol stations in Pakistan is a clear indication of the widening existing gap between the government and the petroleum business on fiscal measures. Therefore, the results of consultations between the PPDA delegation and government representatives will directly affect further developments in the petroleum retail industry in Pakistan.
