FBR to register FIR against PIA officials
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In an action taken on Thursday, the Federal Board of Revenue (FBR) froze 13 bank accounts belonging to Pakistan International Airlines (PIA) due to a failure to pay Rs8 billion in Federal Excise Duty (FED). FBR officials have indicated that even the bank accounts linked to the International Air Transport Association (IATA) will be affected.
The FBR has decided to initiate legal action against PIA officials for not submitting the required FED, even though the accounts had been restored in the past month. PIA's spokesperson mentioned that this freezing of accounts won't impact flight operations and assured that government-level discussions are ongoing to resolve the situation. Notably, on July 27, the FBR had initially frozen all PIA bank accounts due to tax non-payment, but this was later resolved by July 28 after negotiations between the two parties.
The national carrier has been facing financial challenges due to various factors, including mismanagement of funds, increased operational expenses, and rising fuel prices. Additionally, PIA's adherence to international safety standards has come under scrutiny, resulting in temporary bans on its operations in certain countries. Despite these financial issues, PIA has asserted that its flights have continued unaffected.
FBR sources indicate that PIA failed to deposit Rs4 billion FED collected from ticket sales, which has led to challenges in covering fuel costs. This isn't the first time PIA has faced fuel supply issues; Pakistan State Oil (PSO) had declined fuel supply during a previous account freeze.
