PIA, FBR reach understanding on outstanding dues

ISLAMABAD: The Pakistan International Airline (PIA) and Federal Board of Revenue (FBR) on Saturday reached understanding over non-payment of dues, ARY News reported.

As per the agreement, the national flag carrier will submit Federal Excise Duty (FED) to FBR in four instalments.

The national airliner agreed to submit Rs1.90 billion to the FBR till June on a monthly Rs500 million instalments as PIA has to submit Rs4 billion to the FBR in terms of FED.

The understanding between two national institutions was reached during a meeting between the FBR chairman and PIA CEO.

Earlier, the Federal Board of Revenue (FBR) froze all bank accounts of PIA over billions of rupees outstanding payments in terms of FED.

The Federal Board of Revenue (FBR) had 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 did not paid the federal excise duty (FED) that is 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.