FBR freezes PIA bank accounts for non-payment of FED

ISLAMABAD: The Federal Board of Revenue (FBR) took action on Thursday to freeze the bank accounts of Pakistan International Airlines (PIA), the national flag carrier, due to the company’s failure to make a payment exceeding Rs eight billion in taxes.

FBR officials stated that a total of 26 bank accounts associated with the International Air Transport Association (IATA) that belong to the national carrier have been subjected to freezing.

“The decision has been made to initiate the process of filing a first information report (FIR) against PIA officials due to their failure in submitting the Federal Excise Duty (FED),” revealed the FBR officials. “This failure to remit the FED occurred despite the restoration of the accounts last month.”

The FBR noted that PIA had committed to settling dues amounting to Rs 2 million for the Federal Excise Duty in August, but regrettably, it could not fulfill this commitment.

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Responding to the development, a representative from PIA assured that the freezing of the airline’s bank accounts will not have any adverse effects on its ongoing flight operations.

“There are ongoing discussions at the government level, and we anticipate the restoration of PIA’s accounts in the near future,” the spokesperson further confirmed.

Earlier in July, Pakistan State Oil (PSO) declined to provide fuel to three PIA aircraft, leading to disruptions in several international and domestic scheduled flights.