Oil Tanker Contractors Association announces strike in Karachi
KARACHI: The Oil Tanker Contractors Association on Saturday announced a strike against the implementation of services sales tax.
“If combined, the sales tax for all provinces sums up to sixty-four percent,” said the chairman of Oil Tankers Contractors Association, Suleman Tareen. “We have to pay PKR 64,000 to earn PKR 100,000.”
Tareen stated that Karachi’s petrol pumps have four-day fuel reserves, whereas countrywide fuel reserves will last for six days, and independent power producers (IPPs) have furnace oil reserves that will last for seven days.
The Ministry of Petroleum had earlier appealed through a letter to the respective chief secretaries of Punjab and Sindh to delay the collection of services sales tax under the 18th amendment until June 30.
The ministry issued a statement showing concern that the strike may pose a serious threat to the country’s oil reserves.
After the 18th Amendment to the Constitution in April 2010, the provinces were delegated with the powers to collect sales tax from the federation. Sindh Revenue Board was the first to start functioning followed by Punjab, KP, and Balochistan.
Oil tankers transport edible oil, furnace oil, diesel, petrol, kerosene oil, and jet fuel throughout the country.