Problems for a cash-starved Pakistan International Airlines (PIA) are further aggravated as Large Taxpayers Unit (LTU), Karachi, has frozen its nine bank accounts to recover Rs 2.2 billion pending tax payments; it was learnt here on Tuesday. According to sources, LTU, Karachi after issuing show cause notices to the national flag carrier on November 6, 2015, has now frozen its nine bank accounts to recover Rs 2.2 billion tax payments pending for the tax periods of May, June and July.
The large tax collecting arm of Federal Board of Revenue (FBR) is of the view that PIA had collected Federal Excise Duty (FED) and income tax from passengers on international air travel for the said tax periods and failed to deposit into the kitty. Moreover, sources said that PIA collected around Rs 500 million FED from passengers on international air travel per month while Rs 200 million was averagely collected every month on account of income tax.
They informed that this collection was required to be deposited by 15th day of every month as per decision made by the Economic Co-ordination Committee (ECC). However, sources in LTU, Karachi alleged the PIA for using said FED and income tax collection for its operational purposes instead of depositing it into kitty. Sources apprised that all nine frozen bank accounts had insufficient balance hence no recovery was made for the LTU, Karachi. When contacted, PIA spokesman dispelled the said action against the airline.