FBR Refuses to Write Off PIA’s Tax Liabilities

[Abbas Ali]

Federal Board of Revenue (FBR) has refused to write off tax liabilities of PIA.

PIA is required to pay multiple years outstanding amount to FBR.

PKR 14 billion that doesn't include late payment penalty is payable under Federal Excise Duty (FED).

PIA has paid an amount of PKR 25 million in this regard.

FBR sources said the airline had requested tax authorities to write off the payable considering the massive losses of the airline. However, the tax authorities said there was no provision to write off tax liabilities.

Source: https://www.thenews.com.pk/print/822820 ... 1614425317

[Abbas Ali]

Cases were registered against Shaheen Air and airline's head office was sealed over tax default/evasion forcing the privately-owned airline to shut down its operations.

Abbas

[Shahab]

Agree with the action. Why should PIA be any exception?

[Amaad Lone]

Government must take over loans of PIA along with non-core assets and try to create an airline that can function without government handouts.

PIA debt is the big problem as that is going to pull down any future plans for the airline.

There was a time the two hotels were equal to the loans of PIA, now they are not even worth 50%.

Good luck.

[Shahab]

Unfortunately I don't see any other option other then to close the airline down. Government can try to sell it off but we all know where this road leads to. In the absence of privatisation, the airline should have been folded years ago

[Amaad Lone]

Unfortunately I don't see any other option other then to close the airline down. Government can try to sell it off but we all know where this road leads to. In the absence of privatisation, the airline should have been folded years ago

Closing down PIA will not do anything for the government.

The massive 400 billion rupee debt has been guaranteed by the sovereign guarantees of the government and that debt will have to be repaid whether PIA exists or not.

Plus 60-70 billion of liabilities to CAA, FBR and PSO will remain and since these three are government owned entities it does not matter if PIA pays or not, its from one pocket to another.

Regardless government has to pay 30 billion plus in interest payments whether you have an airline or not.