FBR resolves payment dispute, unblocks PIA’s bank accounts

The decision to unblock accounts came after the PIA's management assured the tax authorities of settling all outstanding dues

The Federal Board of Revenue (FBR) has lifted the block on Pakistan International Airlines’ (PIA) bank accounts after the resolution of a non-payment issue.

The FBR had initially frozen PIA’s accounts due to outstanding dues, coinciding with a visit from the European Union Aviation Safety Agency (EASA) for a safety audit. This move raised hopes for the potential lifting of the ban on PIA flights to Europe.

The decision to unblock PIA’s accounts came after the airline’s management assured the tax authorities of settling all outstanding dues. The FBR withdrew its order to freeze the accounts, marking a positive step forward for PIA.

The threat of a potential oil supply halt by Pakistan State Oil was also looming if the outstanding dues were not addressed promptly. However, with the FBR’s intervention and the commitment from PIA, the situation has been defused.

In an official notification, the FBR’s deputy commissioner for Inland Revenue stated, “This office has been directed to withdraw the notice mentioned above and to de-attach the bank accounts of the subject taxpayer with immediate effect.” However, it was emphasized that this de-attachment does not preclude the department from pursuing recovery proceedings under Section 14(3) of the Federal Excise Act, 2005, related to the recovery of unpaid duty or arrears of duty.

PIA spokesman Abdullah Khan confirmed the FBR’s directive to unfreeze the airline’s accounts nationwide. He further noted that ongoing communication between the national carrier and the FBR’s Large Tax Unit aimed to ensure a resolution of the matter.

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