Pakistan International Airlines (PIA) all bank accounts have been frozen by Federal Board of Revenue (FBR). The reason for it is that the flagship air carrier of Pakistan did not pay its tax dues. Thus all its bank accounts have been frozen.
As per the news reports, PIA has to pay Rs. 10 million federal excise duty to FBR but PIA was unable to pay to FBR. Thus FBR in response has frozen all PIA bank accounts. This is causing trouble for PIA to pay salaries to its employees and run flight operations effectively.
Also, as all PIA accounts have been frozen, it is now difficult for PIA to acquire fuel for its aircraft as it is not able to pay its suppliers.
Three days have passed and as of yet, no progress has been made. Furthermore, it is also reported that there had been talks between PIA and FBR but with no result.
A couple of years back FBR froze half of PIA’s bank accounts due to a similar issue. Then PIA paid Rs85 million and requested FBR to open its account as it was unable to operate effectively. So PIA has a prior history of its accounts getting frozen. Let’s see what happens this time.
Recently FBR also suspended Shell Pakistan’s sales tax registration. The reason for the suspension was because Shell Pakistan knowingly committed tax fraud to avoid paying tax. In response Shell Pakistan said, “The company had earlier clarified that the relevant amount of tax had been paid in full therefore there was no shortfall in the payment of tax. However, FBR proceeded with the suspension of SPL’s GST license before the stipulated time given to the company to respond.”
Interesting: PIA cut its workforce by 50%
Adding,” PL complies with all statutory requirements of the Country and strives to conduct its business in accordance with the applicable laws of Pakistan. SPL will continue to work closely with the tax authorities to resolve this issue.”