Turnover tax on oil dealers withdrawn

Dealers say 0.5% tax constitutes double taxation that may lead to business closure

KARACHI:

Negotiations between the Pakistan Petroleum Dealers Association (PPDA) Reforms Group and the government have remained successful after which the turnover tax imposed on petroleum dealers has been withdrawn, announced the dealers’ body on Saturday.

According to PPDA Reforms Group spokesperson Hassan Shah, the association leaders met Minister of State for Finance Ali Pervaiz Malik, Federal Board of Revenue (FBR) Chairman Amjad Zubair Tiwana, Petroleum Secretary Momin Agha, Oil and Gas Regulatory Authority (Ogra) chairman, Pakistan State Oil (PSO) managing director and other officials to press their case that the petroleum dealers were already paying a fixed tax.

Imposing an additional 0.5% turnover tax constituted double taxation, which would lead to the closure of businesses, they said.

Though the dealers supported the government’s new tax measure to bridge the financing shortfall, they categorically said they could not bear the new levy. Consequently, the dealers’ demand was accepted.

Shah said that around 95% of dealers across Pakistan had rejected the strike call given by some dealers in Karachi and kept their business open. He alleged that those dealers had secret links with the oil marketing companies (OMCs).

“We appreciate the patience and cooperation of the minister and his ministry, Ogra and all FBR officers, and we will continue mutual cooperation in future as well,” said PPDA Reforms Group leaders Nauman Butt, Nadeem Aziz Khan, Khawaja Atif Ahmed, Humayun Khan and Zaheer Ahmed Paracha, according to a statement. They added that dialogue was a better option than resorting to protests.