FBR Unfreezes Bank Accounts of PIA A Day After De-Attachment Order

The Federal Board of Revenue (FBR) has de-attached the bank accounts of Pakistan International Airlines (PIA), a day after issuing the order due to non-payment of federal excise duty. A letter by the Office of the Deputy Commissioner Inland Revenue, Unit-2, Zone-I, Large Taxpayers’ Office, Karachi, said the tax regulator has directed to withdraw the notice dated 29 November 2023 of attachment of bank account(s) in the name of M/S Pakistan International Airlines and to de-attach with immediate effect. The said de-attachment does not bar the department from pursuing the recovery proceedings under section 14(3) of the Federal Excise Act, 2005, read with rule 60(l)(d) of the Federal Excise Rules, 2005, as the case may be, the letter added. This comes just a day after the LTO in Karachi froze all of PIA’s bank accounts. Banks were instructed to promptly transfer any funds received in PIA accounts to the FBR treasury. Notably, PIA is having difficulty paying taxes due to cash flow issues. The national flag carrier has largely survived on regular bailouts from the government and received support commitments from time to time.