Daily Times

In a significant turnaround, the Pakistan Petroleum Dealers Association (PPDA) has successfully convinced government officials to revoke the imposition of a 0.5 percent advance turnover tax on petroleum retailers. The PPDA’s Reforms Group engaged in extensive discussions with key government figures, emphasizing that the tax was a misinterpretation of existing laws. They argued that petroleum outlets were already subject to fixed withholding taxes, rendering the additional turnover tax burdensome and unjust. Hassan Shah, spokesperson for the PPDA, highlighted the impact of the proposed tax on fuel traders, noting their slim profit margins amidst soaring inflation. The association’s efforts culminated in meetings with Minister of State for Finance & Revenue Ali Pervez Malik, FBR Chairman Amjed Zubair Tiwana, and other high-ranking officials, leading to a reassessment of the taxation policy. Following the discussions, the Ministry of Energy sought clarity from the FBR regarding the applicability of the tax, leading to an official memorandum clarifying that such taxes do not apply to dealers under the Final Tax Regime. Shah praised the majority of dealers for their constructive approach, noting that most disregarded calls for strikes initiated by a minority group with ties to Oil Marketing Companies. He commended government officials for their patience and cooperation throughout the negotiations. Looking ahead, PPDA leaders expressed optimism for continued collaboration with government bodies to address industry challenges through dialogue rather than disruptive protests. This resolution marks a collaborative effort between industry stakeholders and government officials to ensure fair taxation policies amidst economic challenges, reflecting a balanced approach to governance and economic stability.