ISLAMABAD (PEN) : The federal government has decided to retract the 0.5 percent additional withholding tax imposed on petroleum dealers, following successful negotiations with their association.
A notification has been issued confirming the abolishment of this tax, which was introduced in the 2024-25 budget. Initially, the government had levied this tax on petrol pumps in addition to the existing 12.5 percent withholding tax on their margins.
Earlier in the day, the Pakistan Petroleum Dealers Association announced the end of their strike and the reopening of petrol pumps nationwide. Abdul Sami Khan, the association’s leader, emphasized unity among petroleum dealers and expressed dissatisfaction with the government’s decision to impose a Rs 1 million tax on petrol pumps.
While Finance Minister Muhammad Aurangzaib assured resolution of their concerns, Abdul Sami Khan highlighted that their demands have yet to be fully met.
Notably, Karachi faced fuel shortages due to the strike, affecting petrol stations across the city. However, Pakistan State Oil (PSO) and other oil marketing companies continued petroleum product supplies from their terminals.
The Oil Tanker Owners Association clarified its stance, distancing itself from the strike and confirming ongoing fuel supplies to essential sectors like railways, airports, and power plants.
PSO affirmed that its supply chain remains operational, ensuring uninterrupted availability of petroleum products despite the strike’s impact.
