There would be no additional tax on petrol pumps, the Federal Board of Revenue (FBR) said on Friday night after successful negotiations between the government and the Pakistan Petroleum Dealers Association.

“It is clarified that the provisions of tax collection under Section 236H are not applicable on dealers/retail outlets of oil marketing companies as the income of such person fall under the purview of Final Tax Regime in terms of section 169 of the Ordinance and it is full and final discharge of tax liability by the dealers/retail outlets of OMCs,” the FBR said in a memorandum.

The Petroleum Division had sought clarification from the FBR over excluding OMCs from the applicability of Section 236H.

The FBR said that the petroleum dealers operate in the regulated sector under a fixed margin and the authority collected income tax from them under Section 156 of the Income Tax Ordinance.

The Directorate General Oil sought clarification after petroleum dealers/retail outlets complained that they were facing hardships after the scope of Section 136H was extended to all sectors of the economy through the Finance Act.

While reacting to the development, the association thanked the authority, the Petroleum Division secretary, and the Oil and Gas Regulatory Association chairman for their cooperation.