PIA Gets Tax Relief

[Abbas Ali]

Government of Pakistan has included 31 amendments in the Income Tax Ordinance 2001 in the Finance Bill 2024-25, which will come into effect from July 1, 2024, after approval from parliament this week.

New provisions have been added in Section 57 to provide tax relief to the Pakistan International Airlines Corporation Limited (PIACL), under which the loss incurred in the tax year beginning after 2017 could be carried forward for the next 10 years.

https://e.thenews.com.pk/detail?id=319739

[Amaad Lone]

Government of Pakistan has included 31 amendments in the Income Tax Ordinance 2001 in the Finance Bill 2024-25, which will come into effect from July 1, 2024, after approval from parliament this week.

New provisions have been added in Section 57 to provide tax relief to the Pakistan International Airlines Corporation Limited (PIACL), under which the loss incurred in the tax year beginning after 2017 could be carried forward for the next 10 years.

The government has transfered 600 billion rupees in liabilities to PIA Holding Company, which basically means losses PIA incurred over the years and financed by the BAILOUT money provided by number of governments over the years.

What losses do they want to carry forward?? Those losses have been parked in the holding company. Is this being done so the NEW PIA does not pay tax for the next 10 years??