Imposition of 5 percent ST by Sindh government: APOTA warns of wheel-jam strike

A serious fuel crisis is looming large for the consumers of petroleum products, including power producers owing to the transporters' strike against the imposition of five percent sales tax by the Sindh government. Having set a 72-hour deadline for the provincial government to withdraw the controversial tax, the All Pakistan Oil Tankers Association (APOTA) claimed to have stopped transporting fuel in Sindh province on Tuesday.
"If our demands were not accepted by tomorrow, we would observe a wheel-jam strike across the country," APOTA's senior vice chairman Shams Shahwani told Business Recorder on telephone from Quetta. He warned that 75,000 oil tankers would stop supplying fuel to individual, commercial and industrial consumers, aircrafts and power generation plants across Pakistan.
The hauler said that the APOTA had long been at odds with the Sindh government on the imposition of the levy which stood completely "unjustified". "We already are paying at least Rs 150,000 to Rs 200,000 under various heads," said Shams adding "From Karachi to Mehmoodabad (Punjab) we pay about Rs 35000 as toll tax." In addition, the APOTA official said, the oil tankers operate on contractual basis and are therefore liable to pay Rs 20000 to the contractor as a commission. "This is highhandedness on the part of the SRB (Sindh Revenue Board) to burden us with new taxes," said Shams. The transporter warned that all fuel stations in Punjab and Sindh would go dry by tomorrow when the Association would be observing a complete strike.
"There are about a dozen suppliers of fuel who would adversely be affected if our demands are not met," he said. Asked if anyone from official quarters had contacted his side, the hauler replied in negative. The sources privy to the supply network said the strike so far had no impact in terms of supply of MotorGas and High Speed Diesel (HSD) at the city fuel stations.
What, however, should concern the federal and provincial governments the most is the fact that the strike would also put adverse effect on the power generation process in the energy-scarce country. The current daily supply of furnace oil by the Pakistan State Oil to the power producers, according to sources, stands at around 28000-30000 metric tons. The government though may count on its alternate sources of supply like railways and pipelines but, the sources conceded, the supply chain was set to feel the heat of strike.
"The strike could have an impact of 30-40 percent," said an industry source, adding that there is no disturbance as yet. (But) by tomorrow we should have a clear picture".
The transporters, the source said, were protesting the imposition of high sales tax by the Sindh government in the new budget. Refusing to give numbers, the source said the fuel stations would be affected negatively if an immediate solution was not found by the quarters concerned.