KARACHI: The Pakistan International Airlines (PIA) has assured the Federal Board of Revenue (FBR) of paying all pending dues of Rs 3.7 billion Federal Excise Duty (FED) by June 2017.
It was assured in a meeting, held between the officials of national-flag carrier and tax officials of Large Taxpayers Unit (LTU)-I, that the amount would be paid through monthly payment of Rs 800 million.
The PIA had to collect Rs 10,000 FED from international business class passengers, Rs 5,000 from economy class passengers and Rs 2,500 from domestic passengers and liable to deposit the same into national kitty within 45 days.
However, the airline despite collecting Rs 8 billion from international and domestic passengers did not deposit the same for the period 2010 to 2013. Sources said that in 2013, the tax department had attached 15 bank accounts of the airlines in order to recover Rs 25 billion including Rs 8 billion principle amount and rest of it as fine and penalty but the Economic Co-ordination Committee (ECC) in its meeting held on July 18, 2013 restrained the LTU, Karachi from tax recovery exercise and ordered to de-attach all airline’s bank accounts.
