Government revokes advance tax on petroleum dealers after effective protest

• Protest by petrol pump owners forced government to scrap new tax.
• Advance tax on petroleum dealers revoked after FBR talks.
• Oil dealers income already finalized under existing tax system.

The protest by petroleum dealers has been effective, leading to the government’s decision to revoke the advance tax imposed on them.

Following the Federal Board of Revenue’s (FBR) deferment of the dealers’ strike, the advance tax was removed, and a formal announcement was made.

The Federal Ministry of Energy had expressed to the FBR that the change in Section 156A of the Petroleum Dealers Income Tax Ordinance, 2001, was causing undue strain on the dealers.

Further clarification from the Directorate General of Oil confirmed that tax provisions under Section 236 H of the Income Tax Act do not apply to the dealers and retail outlets of Oil Marketing Companies (OMCs), as their income is already finalized within the tax system.

Consequently, the FBR has rescinded Section 236 H for the petroleum industry, aligning the tax requirements with the dealers’ finalized income status.

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