FBR seizes PIA bank accounts: The Pakistan International Airlines (PIA) bank accounts have once more been frozen by the Federal Board of Revenue (FBR) due to the airline’s repeated failure to pay taxes of Rs2.86 billion.
In a letter to the bank’s manager, Deputy Commissioner Inland Revenue Unit-02 Sharjeel Ahmed stated that M/S Pakistan International Airlines NTN: 0803450 had unpaid government dues totaling Rs2,864 (M) for several tax months.
Therefore, it continued, “I hereby issue/serve this notice for attachment of [the] bank account… and any other bank account maintained against NTN: 0803450 of the defaulter maintained with your bank, if any, with immediate effect until the amount of tax is paid or recovered in full.” This was done in accordance with the authority granted under Section 14(3) read with Rule 60(1)(d) of the Federal Excise Act, 2005.
With immediate effect, “it is requested to record, sign, and stamp the balance amount at the time of service of notice in the bank account(s), and provide the bank statement for the period beginning on July 21 and ending on the date reflecting [the] balance on the date of attachment… and issue [a] pay order in favour of the Commissioner Inland Revenue, Zone-I, Large Taxpayers’ Office, Karachi, under notification to this office for further action,” it stated.
“PIA Receives Rs44 Billion Government Bailout Package Amid Financial Turmoil”
The PIA had 53 of its bank accounts blocked by the FBR in January of last year after the airline was discovered to be in Rs26 billion in tax arrears, only to have them unfrozen later that day after the carrier’s CEO met with the head of the tax authority.
Despite its difficulties, the PIA CEO told the FBR that the airline would continue making payments on its debts and would seek advice from the cabinet.
The airline’s rural operations would have been impacted by the account freezing.
In order to recoup unpaid fees, there were reportedly preparations to obtain arrest warrants for the PIA managing director.
After failing to make any progress in the national flag carrier’s financial situation for three years, the government agreed a Rs44 billion bailout package for the PIA in September 2021 in the form of cash and sovereign guarantees.
The Rs44 billion was given in response to the PIA’s growing losses, which by June 2020 had risen to Rs542 billion.
The Economic Coordination Committee (ECC) of the Government increased the guarantee ceiling from Rs226 billion to Rs247.6 billion in order to make borrowing easier.
It was intended to borrow the funds from commercial banks using the finance ministry’s sovereign guarantees.