FBR Freezes PIA bank accounts over unpaid FED
The Federal Board of Revenue (FBR) has taken
the step of freezing 13 bank accounts belonging to Pakistan International
Airlines (PIA) due to the non-payment of Rs8 billion in Federal Excise Duty
(FED). Even though the accounts were restored last month, the required FED was
not submitted, prompting this action. Notably, the national carrier's bank
accounts linked with the International Air Transport Association (IATA) will
also face freezing.
FBR officials have indicated that they intend
to file a first information report (FIR) against PIA officials for their
failure to submit the required FED. PIA's flight operations, however, are
expected to continue unaffected by the account freeze, as stated by a PIA
spokesperson. Assurances have been given that the situation will be resolved
soon through government-level discussions.
It is worth noting that this is not the first
time PIA's bank accounts have been frozen for tax-related issues. On July 27,
FBR initially froze all of PIA's accounts due to tax non-payment, with the
accounts being subsequently restored on July 28 following negotiations between
the two parties.
PIA has been grappling with financial
challenges in recent years, attributed to factors like mismanagement,
increasing operational costs, and soaring fuel prices. The airline has also
faced international scrutiny over compliance with safety standards, leading to
temporary bans and restrictions on its operations in various countries. Despite
such issues, PIA has maintained that its flights remain unaffected by these
financial disputes.
FBR sources have reported that PIA has not
deposited the Rs4 billion FED that it had collected through ticket sales. The
airline's previous account freeze led to difficulties in procuring fuel for its
planes, as the Pakistan State Oil (PSO) declined to supply fuel during that
time.
Source: GEO TV