Tag: nationwide strike

  • FBR asks traders to pay advance tax of up to Rs60,000 by the 15th of every month

    FBR asks traders to pay advance tax of up to Rs60,000 by the 15th of every month

    The Federal Board of Revenue (FBR) has issued a notice to traders in Karachi, instructing them to pay an advance tax of up to Rs60,000 per month under the Tajir Dost Scheme.

    The notice, issued by the regional tax office in Karachi, specifies that the payment is due by the 15th of each month.

    The Tajir Dost Scheme, designed to simplify tax compliance for traders, has sparked concern among the business community, particularly in key markets such as Liaquatabad and the electronics market.

    Traders have expressed frustration over what they see as an additional financial burden imposed by the authorities.

    In response to the scheme, Karachi’s business community has decided not to comply with the advance tax payment. On Friday, traders announced a nationwide strike scheduled for August 28 to protest against the Tajir Dost Scheme.

    During a joint press conference, the All Pakistan Anjuman-e-Tajiran, along with other traders’ associations, demanded the immediate withdrawal of the scheme, labelling it as ‘unacceptable.’

    They also called for the reversal of the decision to impose heavy taxes on the export sector, as well as the withdrawal of the recent increase in income tax slabs for salaried individuals and business owners.

  • Oil and Gas Regulatory Authority implements Rs10 per kg hike in LPG prices

    Oil and Gas Regulatory Authority implements Rs10 per kg hike in LPG prices

    The Oil and Gas Regulatory Authority (OGRA) has announced a revision in the prices of liquefied petroleum gas (LPG), raising it by Rs10 per kilogramme. As per the notification, the new price for LPG will be Rs240 per kilogramme.

    Additionally, the domestic cylinder rate will be increased to Rs2,830, while the commercial cylinder prices will soar to Rs10,900.

    In remote and mountainous regions, the LPG price will be set at Rs370 per kg, with the home LPG cylinder costing Rs4,130.

    The Chairman of the LPG Association, Irfan Khokar, expressed his concern over the government and OGRA’s lack of action against the illegal sale of LPG across the country.

    Furthermore, LPG sellers have called for a countrywide strike to protest against the high prices of the commodity.

    According to reports, LPG is not being sold anywhere in the country at the fixed official price due to black marketeering.

  • Petroleum dealers’ strike averted: Govt approves Rs1.64 per litre profit margin increase

    Petroleum dealers’ strike averted: Govt approves Rs1.64 per litre profit margin increase

    The government has successfully reached an agreement with the Pakistan Petroleum Dealers Association (PPDA) to avert the strike they had threatened last week. After extensive negotiations, the government agreed to increase the profit margin on petroleum products for dealers by Rs1.64 per litre.

    Chairman of the PPDA, Abdul Sami Khan, made the announcement regarding the deal. Initially, the government had proposed a lower increase of Rs1.64 per litre, but the dealers, who had originally sought a higher increase of Rs5 per litre, resisted, deeming it insufficient to cover their rising business costs. Eventually, they accepted the government’s offer.

    The new profit margin for dealers will be implemented in four phases. Every fortnight, it will be raised by Rs0.41 per litre, culminating in a full raise of Rs1.6 per litre within two months. This will bring the dealers’ margin to Rs7.6 per litre, up from the current Rs6 per litre.

    The decision to strike was initially announced by the PPDA in response to the ongoing inflation crisis. The association stated that increasing interest rates and inflation had severely impacted their businesses and demanded a raise in the dealership margin to cope with the challenges they were facing. They also pointed out a decline in sales by 30%, partly due to the smuggling of Iranian fuel into the country.

    Read more: Petroleum dealers and Minister set to meet today to resolve profit margin dispute

    However, the strike was deferred for two days after the PPDA members engaged in discussions with the State Minister for Petroleum, Musadik Malik. The minister’s visit to Karachi was aimed at convincing the PPDA to call off the nationwide strike.

    In summary, following negotiations with the government, the Pakistan Petroleum Dealers Association has agreed to suspend their planned strike, and the government will increase their profit margin on petroleum products in a phased manner over the next two months.

  • Pakistan’s petroleum dealers temporarily postpone nationwide petrol pump shutdown

    Pakistan’s petroleum dealers temporarily postpone nationwide petrol pump shutdown

    Pakistan Petroleum Dealers Association (PPDA) has postponed its planned nationwide strike to shut down fuel pumps for two days following successful negotiations with State Minister for Petroleum, Musadik Malik, who arrived in Karachi today (Friday) to address their concerns.

    In their statement, PPDA conveyed the possibility of holding further discussions with the government after the two-day period. Initially, the association had announced the shutdown of all petrol pumps across Pakistan on July 22 at 6 pm, demanding an increase in profit margins amid the ongoing inflation crisis.

    The PPDA’s concerns primarily revolve around the impact of high interest rates and inflation on their businesses, leading them to call for an increase in the dealership margin. They also raised the issue of declining sales due to the smuggling of Iranian fuel into the country.

    Abdul Sami Khan, chairman of the association, informed Reuters that approximately 8,000-9,000 operators, represented by the PPDA, were prepared to shut down operations on July 22.

    The supply of petrol will remain suspended until the demands put forth by the PPDA are met by the government. This decision comes at a time when Pakistan is grappling with a weakening currency and soaring inflation, with the national rate reaching 29.4% in June, down from the record high of 38% in May.

    In May of the previous year, Pakistan’s oil industry had requested a Rs12/litre margin on high-speed diesel (HSD) and Mogas (petrol) for oil marketing companies (OMCs) due to the high cost of conducting business, leading to financial hardships.

    The PPDA highlighted various challenges faced by the oil industry, including increased fuel prices in the international market, exchange rate fluctuations, higher interest rates resulting in inventory holding costs, credit letter confirmation charges leading to higher demurrages, and a high turnover tax of 0.5 per cent.

    Although the Economic Coordination Committee (ECC) had revised the margin for HSD and Mogas to Rs6/litre during the current year based on a decision taken on October 31, 2022, the PPDA insists that this revision is insufficient and requires urgent review.

  • Petroleum dealers demand commission hike, threaten countrywide petrol pump shutdown

    Petroleum dealers demand commission hike, threaten countrywide petrol pump shutdown

    The petroleum dealers have issued a formal threat to initiate a nationwide strike in their pursuit of an increase in commission rates from the government.

    The petroleum dealers have expressed their intention to cease operations at petrol pumps throughout the entire country, while simultaneously demanding that the government reinstate a 5 per cent profit margin.

    Abdul Sami Khan, Chairman of the Pakistan Petroleum Dealers Association (PPDA), emphasised that they are unable to sustain the sale of petroleum products at the current commission rates for dealers.

    Khan further announced the urgent convening of a meeting in Lahore on July 12th, with the purpose of addressing these concerns. He asserted that the sale of petroleum products has experienced a significant decline of 40 per cent due to the prevalence of smuggled petrol and diesel in the nation.

    In the previous year, the dealers had demanded that the dealer’s margin be fixed at 6 per cent and had issued a similar nationwide strike threat.

    Earlier, the oil marketing companies (OMCs) had written a formal letter to the Oil Companies Advisory Committee (OCAC), requesting the federal government to establish OMC’s margin for petrol and high-speed diesel (HSD) at Rs12 per litre.

    It has come to light that the dealers’ commission had experienced a notable increase of over 25 per cent to Rs7 per litre in 2022. According to ARY News, this increase coincided with the adjustment of OMC’s margins from Rs3 and Rs3.68 per litre on petrol and HSD, respectively, to Rs6 per litre in November 2022.