ISLAMABAD: The Federal Board of Revenue will recover nearly Rs 920 million in outstanding Federal Excise Duty from Pakistan International Airlines after its privatization, according to FBR officials.
The decision was shared by FBR Member Inland Revenue (Operations) Dr. Hamid Ateeq Sarwar during a meeting of the Public Accounts Committee. The meeting focused on unresolved FBR audit objections raised by the Auditor General of Pakistan over the past 10 to 15 years.
Officials from the Auditor General’s office said the FED amount must be recovered because it was collected from consumers and not provided to the airline as a government grant.
Dr. Sarwar said that recovering the FED from PIA before privatization could result in the airline ceasing operations. He said the Privatization Commission could provide updates on the status and process of PIA’s privatization.
