FBR seizes PIA's bank accounts for tax recovery

KARACHI: The Federal Board of Revenue (FBR) on Thursday recovered tax of Rs500 million from Pakistan International Airlines (PIA), citing sources, ARY News reported.

As per details, the PIA agreed to pay Rs500 million out of a total of Rs2.86 billion tax due on account of federal excise duty after its accounts were sealed by the FBR.

The bank accounts were unfrozen after the Pakistan International Airlines administration assured to pay Rs500 million tax due on account of federal excise duty.

This is not the first time the FBR has taken such action against the PIA. In January last year, the FBR froze 53 bank accounts of Pakistan International Airlines for defaulting on taxes worth Rs. 26 billion.

The accounts were later restored after Pakistan International Airlines CEO met with the tax body’s chief, promising to pay the arrears despite the challenges the airline was facing.

The freezing of the accounts would have had severe repercussions for Pakistan International Airlines operations, including its countryside operations. Additionally, there were reports of arrest warrants being issued for the Pakistan International Airlines managing director to recover the dues.