AGL 38.50 Increased By ▲ 0.93 (2.48%)
AIRLINK 131.50 Decreased By ▼ -1.00 (-0.75%)
BOP 5.60 Decreased By ▼ -0.04 (-0.71%)
CNERGY 3.83 Increased By ▲ 0.06 (1.59%)
DCL 8.60 Decreased By ▼ -0.27 (-3.04%)
DFML 40.80 Decreased By ▼ -0.20 (-0.49%)
DGKC 89.05 Decreased By ▼ -1.11 (-1.23%)
FCCL 35.26 Increased By ▲ 0.18 (0.51%)
FFBL 66.45 Decreased By ▼ -0.05 (-0.08%)
FFL 10.45 Increased By ▲ 0.30 (2.96%)
HUBC 109.45 Increased By ▲ 3.05 (2.87%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.82 Decreased By ▼ -0.04 (-0.82%)
KOSM 7.05 Increased By ▲ 0.20 (2.92%)
MLCF 42.23 Increased By ▲ 0.43 (1.03%)
NBP 59.06 Increased By ▲ 0.48 (0.82%)
OGDC 184.00 Increased By ▲ 2.75 (1.52%)
PAEL 25.55 Decreased By ▼ -0.15 (-0.58%)
PIBTL 5.91 Increased By ▲ 0.08 (1.37%)
PPL 147.50 Decreased By ▼ -0.90 (-0.61%)
PRL 23.45 Increased By ▲ 0.23 (0.99%)
PTC 16.57 Increased By ▲ 1.33 (8.73%)
SEARL 69.20 Increased By ▲ 0.41 (0.6%)
TELE 7.24 No Change ▼ 0.00 (0%)
TOMCL 35.75 Decreased By ▼ -0.25 (-0.69%)
TPLP 7.57 Increased By ▲ 0.17 (2.3%)
TREET 14.15 Decreased By ▼ -0.09 (-0.63%)
TRG 50.75 Decreased By ▼ -0.10 (-0.2%)
UNITY 26.83 Increased By ▲ 0.43 (1.63%)
WTL 1.22 Increased By ▲ 0.01 (0.83%)
BR100 9,805 Increased By 37.5 (0.38%)
BR30 29,768 Increased By 367.7 (1.25%)
KSE100 92,265 Increased By 327.4 (0.36%)
KSE30 28,806 Increased By 61.9 (0.22%)

ISLAMABAD: Pakistan International Airlines (PIA) has decided to induct four A320 aircraft on dry lease basis for the period of 72 months but is unable to pay 17 per cent General Sales Tax due to feeble financial position, well informed sources told Business Recorder.

The lease rental value of four aircraft is Rs. 9.388 billion approximately. As per agreement between PIACL- CGACS first aircraft arrived at New Islamabad International Airport (IIAP) on April 29, 2022 and the other three aircraft are scheduled to arrive in Pakistan in the coming weeks.

Currently, PIACL is facing financial constraints and is not in a position to pay GST @17 per cent on the total rental value of Rs. 9.388 billion, i.e., Rs 1.596 billion in lump sum. In this regard, PIACL directly approached FBR on May 9, 2022, May 21, 2022 and May 27, 2022 for payment of GST @ 17% in monthly instalments. However, FBR responded after a lapse of a month and that too after vigorous follow up.

Simultaneously, PIACL approached Ministry of Aviation to take up the matter with FBR which requested FBR for immediate release of the aircraft already arrived at IIAP on upfront payment of GST in two instalments.

FBR while responding to PIACL has informed that there is no provision in Sales Tax Act, 1990 to allow payment of due sales tax on instalment basis. FBR; therefore, advised PIACL to approach ECC for similar action.

Aviation Division argues that in the past, in similar circumstances, ECC had approved payment of GST in instalments. Aviation Division has also endorsed PIACL’s request for payment of GST @ 17 per cent rental value of the leased aircrafts in monthly instalments as advised by FBR.

Aviation Division has proposed that ECC may approve payment of GST @ 17%, i.e., Rs. 1.596 billion approximately on total rental value of Rs.9.388 billion of four A320 leased aircrafts in monthly instalments over the lease term of six years starting from the date of arrival, including the aircraft that has already arrived.

Copyright Business Recorder, 2022

Comments

Comments are closed.