FBR looks to recover Rs 920 million in Federal Excise Duty from PIA
The Federal Board of Revenue (FBR)
has announced plans to recover approximately Rs 920 million in Federal Excise
Duty (FED) from Pakistan International Airlines (PIA) following the airline’s
privatization.
The disclosure was made by Dr. Hamid
Ateeq Sarwar, FBR Member Inland Revenue (Operations), during a meeting of the Public
Accounts Committee (PAC). The session reviewed long-standing audit objections
raised by the Auditor General of Pakistan, some dating back over a decade.
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Officials from the Auditor General’s
office emphasized that the FED in question was collected from passengers by PIA
and therefore must be recovered by the government, as it was not a subsidy or
grant provided to the airline.
Dr. Sarwar stated that enforcing the
recovery prior to privatization could jeopardize PIA’s already fragile
operations. He added that the Privatization Commission is better positioned to
provide updates on the airline’s privatization timeline and procedures.
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The decision to delay recovery until
after privatization reflects the government's cautious approach to balancing
financial accountability with operational sustainability during the airline’s
transition to private ownership.
Source: Profit Pakistan