FBR withdraws directives to freeze PIA’s bank accounts
ISLAMABAD, Nov 30 (SABAH): The Federal Board of Revenue on Thursday withdrew its orders to freeze the Pakistan International Airlines’ bank accounts but at the same time clarified that these directives did not bar it from pursuing recovery proceedings.
The national carrier has been lately embroiled in a financial crisis. On Wednesday, the FBR had frozen 28 PIA accounts. Additionally, Pakistan State Oil had threatened to stop the airline’s oil supply if outstanding dues were not settled.
These actions came at a time when a team from the European Union’s Aviation Safety Agency (EASA) was in Pakistan to assess issues related to flight safety.
The EASA had barred PIA from operating flights to Europe after a plane crashed in Karachi on May 22, 2020. The restrictions were imposed in light of an explosive claim by former aviation minister Ghulam Sarwar Khan in parliament that 40 per cent of Pakistani pilots had questionable qualifications.
In a notification, the FBR’s deputy commissioner for Inland Revenue said: “This office has been directed to withdraw the notice mentioned above and to de-attach the bank accounts of the subject taxpayer with immediate effect.”
However, the board highlighted that the said de-attachment did not bar the department from pursuing “recovery proceedings” under Section 14(3) of the Federal Excise Act, 2005. The law pertains to the recovery of “unpaid duty or of erroneously refunded duty or arrears of duty”.