The Pakistan International Airlines (PIA) bank accounts have once again been frozen by the Federal Board of Revenue (FBR) due to the airline’s repeated failure to pay taxes totaling Rs. 2.86 billion.
Deputy Commissioner Inland Revenue Unit-02 Letter to PIA About Seizing Bank Accounts
“The government dues amounting to Rs. 2,864 (M) are outstanding against M/S Pakistan International Airlines NTN: 0803450 for multiple tax periods,” read a letter written by Deputy Commissioner Inland Revenue Unit-02 Sharjeel Ahmed to the bank’s manager.
“Now therefore, in exercise of powers conferred under Section 14(3) read with Rule 60(1)(d) of the Federal Excise Act, 2005, I do hereby issue/serve this notice for attachment of [the] bank account … and any other bank account maintained against NTN: 0803450 of the defaulter maintained with your bank if any, with immediate effect till the amount of tax is paid or recovered in full,” it further stated.
In a letter to the bank’s manager, Deputy Commissioner Inland Revenue Unit-02 Sharjeel Ahmed stated that, “The government dues amounting to Rs. 2,864 (M) are outstanding against M/S Pakistan International Airlines NTN: 0803450 for multiple tax periods.”
The PIA had 53 of its bank accounts blocked by the FBR in January of last year after it was discovered to be a Rs. 26 billion tax defaulters, only to have those accounts unfrozen later that day after the airline’s CEO met with the head of the tax body.
Despite its difficulties, the PIA CEO told the FBR that the airline would continue making payments on its debts and would seek advice from the cabinet.
The airline’s rural operations would have been impacted by accounts freezing.
In order to recoup unpaid fees, there were reportedly preparations to obtain arrest warrants for the PIA managing director.
After failing to make any progress in the national flag carrier’s financial situation for three years, the government agreed a Rs. 44 billion bailout package for the PIA in September 2021 in the form of cash and sovereign guarantees.
The Rs. 44 billion was given in response to the PIA’s growing losses, which by June 2020 had risen to Rs. 542 billion.
The Economic Coordination Committee (ECC) of the Government increased the guarantee ceiling from Rs. 226 billion to Rs. 247.6 billion in order to make borrowing easier.
It was intended to borrow the funds from commercial banks using the finance ministry’s sovereign guarantees.
To read our blog on “In-flight smokers will be fined Rs. 100,000 by PIA,” click here.
