Government abolishes advance income tax on petrol pumps

ISLAMABAD: The government issued a notification abolishing the 0.5 per cent advanced income tax imposed on petrol pumps from July 1, as outlined in the Finance Bill 2024.

Petrol pumps were previously subject to a 12.5 per cent withholding tax on their margins. The recent decision to eliminate the advanced income tax was aimed at simplifying the tax structure for petrol pump operators.

Read more: OGRA directs oil companies to keep petrol pumps open

Petrol pumps nationwide closed early on Friday following the Pakistan Petroleum Dealers Association (PPDA)’s call to protest the advance turnover tax. According to the association’s chairman, the shutdowns began at 6 am.

The Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy (Petroleum Division) instructed oil marketing companies (OMCs) to keep their outlets operational during the strike to ensure uninterrupted service. Pakistan State Oil (PSO) confirmed the continuous supply of petroleum products.

OGRA also urged provincial authorities to permit oil tanker movements on Friday to facilitate petroleum product supply. They also requested maximum petrol pumps to open, assigning focal persons for coordination purposes.