The Federal Board of Revenue (FBR), recently, froze Pakistan International Airlines’ (PIA) bank accounts over the over non-payment of outstanding tax dues.
FBR had frozen PIA accounts after it delayed the submission of current month’s tax collections of around Rs 100 million, stated media reports.
The reports claimed that PIA has been known for delaying payments to FBR since it owes Rs 32 billion in outstanding dues, and the PIA has received a stay order by the ECC (Economic Coordination Committee of the Cabinet) on the issue.
PIA has to compile tax collections for each month within 45 days and has to pay the revenue authority by 15th of every month.
PIA collects a hefty amount every month under the Federal Excise Duty (FED) charge on ticket sales.
It also collects Withholding Tax (WHT) on tickets and Income Tax it deducts on monthly salaries to its employees.
PIA spokesman Mashood Tajwer said, “FBR has unfrozen PIA accounts on Wednesday after we submitted partial dues and negotiated (assured) to pay remaining later on.”
It was frozen for only one working day and were unfrozen on Tuesday following a long weekend after Labour Day.
PIA sold tickets worth over Rs 24 billion in the first three months of 2017. Its accumulated losses increased by Rs 11.52 billion to Rs 319.10 billion in the period. The airline is yet to announce detailed financial results for remaining quarters until March 31, 2018.