FBR freezes cash-strapped PIA's bank accounts

ISLAMABAD: The Federal Board of Revenue (FBR) has frozen all bank accounts of cash-strapped Pakistan International Airlines (PIA) over Rs4.50 billion outstanding payments.

Sources within the tax collection body told ARY News that the national airline has not paid the federal excise duty (FED) that it collected on tickets over the past two years.

Also Read: PIA announces upto 25pc raise in salaries for employees

They said the FBR froze as many as 50 accounts of the national flag carrier across the country and recovered an amount of Rs465 million against the total outstanding payment of Rs4.5 billion, they revealed.

The sources said the accounts would remain frozen until the entire outstanding amount is recovered.

Also Read: PIA likely to get nod for Europe, UK flights as EASA audit scheduled

In Sept last year, the Civil Aviation Authority (CAA) had restrained Pakistan International Airlines (PIA) from collecting embarkation, security and airport charges for international, as well as domestic flights over non-payment of dues.

“With effect from 01st October, 2021, Passenger Related Charges (Embarkation Fees, Airport Charges, Security Charges etc.) applicable on Domestic and International departing passengers of PIA will be collected by Civil Aviation Authority (CAA),” the country’s aviation regulator said in a letter to the airline’s chief financial officer.