FBR unfreezes PIA’s bank accounts after it reassures timely payment

The Federal Board of Revenue (FBR) froze Pakistan International Airlines’ (PIA) bank accounts after the national airline failed to submit dues timely.

FBR had frozen PIA accounts after it delayed submitting current month’s tax collections of around Rs1 billion, reported an English daily.

Moreover, the report claimed that PIA has been known for delaying payments to FBR since it owes Rs32 billion in outstanding dues, which have been approved a stay by the ECC (Economic Coordination Committee of the Cabinet).

PIA has to compile tax collections for each month within 45 days and has to pay the revenue authority of every 15th of the month.

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PIA collects a hefty amount every month under the Federal Excise Duty (FED) charge on ticket sales. Moreover, 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.”

FBR froze PIA’s accounts last Friday due to late payment, however they remained frozen for only one working day and were unfrozen on Tuesday following a long weekend after Labour Day.

The spokesperson added, “after all we are the two governmental institutions that are having some sort of understanding as how to operate (in the provided circumstance).”

The airlines sold tickets worth over Rs24 billion in the quarter ended March 31, 2017. Its accumulated losses increased Rs11.52 billion to Rs319.10 billion in the quarter. It is yet to announce financial results for remaining quarters till March 31, 2018.

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