FBR seals the bank accounts of PIA over tax evasion. The struggling battle of PIA against all circumstances is turning to be more difficult as the Federal Board of Revenue (FBR) has frozen all bank accounts of the Pakistan International Airlines (PIA) over non-payment of outstanding tax dues.
PIA has to pay Rs 10 million to the FBR, however the company could not make the payments on time, news reports says.
In response to that misconduct, FBR has frozen all PIA accounts. And the recent move by FBR has certainly made it hard for the national carrier to pay salaries and pensions to the employees. Moreover, the recent situation is making it hard to carry out and fund flight operations.
PIA is also struggling to get fuel for its jets due to its fund deficiency as the company is not capable to pay suppliers.
On the other hand, three days have been passed over the issue of frozen accounts but the talks between the PIA and the FBR also bore no fruits. Till now, there is no progress over this serious issue, as per reports.
In the recent past, the FBR had frozen about half a dozen bank accounts of the national flag carrier after PIA failed to pay on Rs 3.5 billion tax payments and defaulted. However, the matter ended when PIA deposited Rs 85 million and appealed that freezing the accounts had badly started affecting the airline’s operations.
To mention here, in a recent move FBR had also banned and suspended the registration of Shell in Pakistan for Tax Evasion. According to FBR, shell Pakistan has deliberately committed tax fraud to avoid tax worth Rs 3 Billion.
In order to get relief, Shell Pakistan approached the Sindh High Court. In response, the court granted a stay order in the larger public interest and set a hearing for April 30, 2018
After the court issued a stay order on Friday, the Federal Board of Revenue (FBR) has reinstated the sales tax registration of Shell Pakistan.
Now, let see what does become of PIA?