ISLAMABAD: The Federal Board of Revenue (FBR) has officially registered a complaint against senior officials of Pakistan International Airlines (PIA) for alleged misappropriation of government funds.
In a formal letter addressed to the Federal Investigation Agency (FIA), the enforcement arm of the FBR, it was revealed that the national flag carrier is a defaulter of federal excise duty (FED) amounting to Rs 8.85 billion.
The FBR’s complaint highlights that the senior management of PIA had collected the outstanding FED over several months but failed to remit the funds to the government, raising suspicions of embezzlement for personal gain. This consistent non-payment of the FED is considered a serious financial irregularity.
Notably, PIA acts as a collection agent for the FBR, deducting FED at the time of ticketing. The deducted amount is not linked to the airline’s operational or management activities but is intended for national revenue and must be deposited within the prescribed time frame.
Tax authorities have further informed the FIA that the PIA’s management’s actions constitute a misappropriation of state funds, which is a punishable offense under current land laws. Additionally, the tax authorities have implicated two senior PIA officers, alleging that their actions not only involve misappropriation but also potentially violate multiple laws, including the Anti Money Laundering Act, 2010, the Prevention of Corruption Act, 1947, and the Foreign Exchange Regulation Act, 1947.
The complaint signifies a serious effort by the FBR to address financial improprieties and ensure the responsible use of government funds. The investigation by the FIA will play a crucial role in determining the extent of the alleged misconduct and in upholding the rule of law regarding public finances.
