The Federal Board of Revenue (FBR) reclaimed Rs500 million in tax from Pakistan International Airlines (PIA) on Thursday. According to records, the PIA agreed to pay Rs500 million of the Rs2.86 billion in federal excise duty outstanding after its accounts were sealed by the FBR.
The bank accounts were unfrozen when the administration of Pakistan International Airlines promised to pay Rs500 million in federal excise taxes. The FBR has taken similar action against the PIA previously. The FBR blocked 53 bank accounts of Pakistan International Airlines in January of last year for failing to pay taxes totaling Rs. 26 billion.
The accounts were eventually reinstated after the CEO of Pakistan International Airlines met with the head of the tax agency and promised to pay the arrears despite the airline’s difficulties.
The freezing of the accounts would have had serious consequences for Pakistan International Airlines operations, including those in the countryside. There were also allegations of arrest warrants being issued for the managing director of Pakistan International Airlines in order to retrieve the debt.