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PETROLEUM DEALERS THREATEN NATIONWIDE CLOSURE OF PETROL PUMPS Friday, 21 July, 2023 I 2 Muharram, 1444
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Rs 15.00 | Vol XIV No 21 I 8 Pages I Islamabad Edition
ASSOCIATION, HAVING OVER 12,000 MEMBERS NATIONWIDE, ANNOUNCES DECISION AGAINST SURGE IN INFLATION, INFLUX OF SMUGGLED IRANIAN POL PRODUCTS PROFIT
SHAHAB OMER
N a press conference held at the Pakistan Petroleum Dealers Association (PPDA) headquarters in Lahore, representatives of the PPDA expressed their deep concern over the surging inflation rate and the influx of smuggled Iranian petrol and diesel, which they claim has severely impacted their business. The association, with a vast network of over twelve thousand members nationwide, announced their decision to forcefully close all petrol pumps across Pakistan from 6:00 am on Saturday, 22nd
July 2023, unless their demands are met. The dealers, who play a crucial role in the country’s economy, pointed out that the Consumer Price Index (CPI) has drastically increased, with inflation rates reaching a staggering 38% compared to 19.9% in the previous year. Additionally, the soaring costs of electricity, labor, KIBOR (KIBOR rate), and other necessary expenses have resulted in a significant decrease in their profit margins, with some dealers even experiencing negative income. “Our association is the largest in Pakistan, and we have been working in agreement with the government since 1999,” stated a spokesperson from the
ECP says ‘fully prepared’ for holding polls on Aug 12 ISLAMABAD
STAFF REPORT
Election Commission of Pakistan Special Secretary Zafar Iqbal claimed on Thursday that the electoral watchdog was “fully prepared” for elections and would hold the polls by October 11 if the National Assembly was dissolved on August 12, when its five-year term comes to an end. The five-year term of the NA commenced under the then-PTI government on August 12, 2018, and will be completed under a PM-Shehbaz-led ruling coalition following the ouster of former premier Imran Khan through a no-confidence vote in April last year. The ECP official’s statement pertaining to the date of the election comes as political parties, particularly those part of the ruling coalition, increasingly engage in consultations — reportedly on the timing of the elections and the caretaker setup, among other matters — ahead of the polls slated to take place later this year.
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association. “Initially, we were entitled to a 5% profit, which was gradually reduced to 4% by 2004. The current government’s decision to limit a mere 2.40% profit, amounting to six rupees per liter, has left us deeply dissatisfied.” Despite repeated attempts to engage with the government and address their concerns, the dealers claimed that they have been ignored and their appeals have fallen on deaf ears. They have also sought the attention of major newspapers across the country to highlight their plight. Furthermore, the association raised serious apprehensions about the rampant smuggling of Iranian petrol and diesel, which has reportedly caused a
significant decline in their sales by approximately 30%. They urged the government to take immediate action to curb the illegal supply of smuggled fuel and protect their businesses from further losses. In light of the pressing issues faced by the petroleum dealers, the PPDA have decided to resort to a drastic measure of closing all petrol pumps nationwide in a bid to pressure the government into addressing their grievances. The impending closure is scheduled for 6:00 am on Saturday, 22 July 2023, unless the government takes swift action to resolve the concerns raised by the Pakistan Petroleum Dealers Association.
ECC approves Rs10b for elections in FY 2023-24 ISLAMABAD
SHAHZAD PARACHA
The Economic Coordination Committee (ECC) of the Cabinet, held with Federal Minister For Finance and Revenue Senator Mohammad Ishaq Dar in the chair on Thursday approved Rs10 billion for conduct of general elections in FY 2023-2024. The approval was made following a summary tabled by the Election Commission of Pakistan (ECP) regarding the demand for funds of Rs42.528 billion as TSG for conduct of general elections in FY 2023-2024. The ECP is taking all necessary steps to conduct the next general election as per the constitutional responsibility and for this purpose, ECP has already asked the Finance division to release the funds. The ECP informed the ECC members that the Finance division has asked the department to move the summary for approval. According to Finance division, the ECC allowed Rs10 billion as first release and fur-
ther release on need basis. The ECC also approved Technical Supplementary Grant (TSG) of Rs200 million in favor of the Special Investment Facilitation Council (SIFC) of PM Secretariat, which has been established to attract investment from GCC and other countries in the fields of Defence, Agriculture, Mineral, IT, and Energy. The ECC considered a summary of the Ministry of Information & Broadcasting regarding charging electricity rates to Cinema houses. In order to revive the film industry in Pakistan, the ECC approved the proposal that Cinemas may be charged electricity as per rates admissible to industry. The ECC also considered a summary of Ministry of Commerce regarding export of vegetable ghee/cooking oil from export processing zones to Afghanistan through land route and approved omission of Para 7(6) and para 7(7) of Export Policy Order (EPO) -2022, which specifies the conditions for exports to Afghanistan.
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IHC declares super tax a violation of Constitution ISLAMABAD
STAFF REPORT
The Islamabad High Court (IHC) ruled that Section 4C — Super tax on high-earning persons and companies — of Income Tax Ordinance 2001 is ultra vires the fundamental rights and against the Constitution. “[Section] 4C, as it stands now, falls to be ultra vires the fundamental rights under Articles 18, 23 and 24, read with Article 4 of the Constitution,” read a verdict authored by Justice Ejaz Sardar Ishaq Khan on Thursday. Referring to Supreme Court’s verdict in the Imrana Tiwana case, the court said Section 4C is “held to be against the scheme of the Constitution and should either be read down or declared ultra vires for the reasons given” in this judgment. In the light of the apex court verdict, the IHC said those taxpayers from whom the tax is collected in the form of final tax, will not be subject to super tax. In the detailed judgment, the IHC judge said the move to exclude previous years’ loss, depreciation, and amortisation allowances from the definition of income by making changes to the definition of income in Section 4C of the Income Tax Ordinance has also been declared unconstitutional. “[Section] 4C, as read down, will have prospective application only, and will not apply to any transactions or events past and closed on or before 30th June 2022,” the verdict added. Moreover, the court said the super tax will not apply to the benevolent funds, petroleum and exploration companies — to the extent its application results in the taxation of such companies exceeding the thresholds stipulated in Rule 4 of the Fifth Schedule to the Ordinance. In the verdict, the court also termed the move to levy super tax at the rate of ten% on ten industries as discriminatory. The IHC has cancelled all the super tax notices and given instructions to issue new notices as per the judgment Several companies, including Fuji Fertilizer Company Limited, had filed petitions against the super tax in the Islamabad High Court. The petitioner companies were represented by advocates Salman Akram Raja, Adnan Haider Randhawa and other lawyers dealing with tax matters.