Shaheen Airlines failed to pay their huge excise duties of Rs. 521 million. In this regard, authorities have sent a notice to shut down the airline’s local operations.
The nonfiction is issued to company for not paying outstanding dues to Federal Excise Duty of a massive amount of Rs. 521 million. So, now the airline is getting barred from continuing its flight operations by the government.
The Deputy Commissioner of Inland Revenue, Farva Abid signed the notice saying that the local airline has already got enough time and in fact well ahead the deadline for meeting its dues.
The notification reads:
“The recovery of Federal Excise Duty amounting to Rs. 521.397 M is recoverable from M/s. Shaheen Air International Limited under Federal Excise Act. 2005 read with Federal Excise Rules, 2005.”
In addition, it says that the duty was to be paid for the month of March 2018.
“Shaheen Airlines asked to shut down operations after it owes Rs 521 million in federal excise duty”
Hence, following the Sub-Rule (c) of Rule-60 of Federal Excise Rules 2005, Shaheen Airline cannot carry on operating its flights until it pays the exceptional debt.
In order to re-continue its business its flight operation, the company have to make the payment, and then wait for the authorities’ approval.
This step can create a huge loss for the airline, because even few hours of inactivity can severely and badly affect business of Shaheen Airline.
Moreover, the notice declares that Shaheen Airline is required to “stop removal of any goods” from its site until of course, “the amount of duty is paid or recovered in full.”
It’s just another event; otherwise Pakistan’s local transportation sector has always been in a wretched state. Either it is airlines or inter-city bus/van services. Authorities are not paying enough attention to the local businesses, customer service and safety.