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FBR directs LTU to recover federal excise duty, sales tax of Rs 5,534.20m from PIAC

FBR directs LTU to recover federal excise duty, sales tax of Rs 5,534.20m from PIAC

ISLAMABAD: The Federal Board of Revenue (FBR) has ordered the Large Taxpayers Unit Karachi to expedite efforts for recovery of Rs 5,534.20 million from Pakistan International Airlines Corporation (PIAC) under the head of federal excise duty and sales tax.

Sources told Customs Today that M/s Pakistan International Airline Corporation (NTN 0803450-8), registered with Large Taxpayers Unit Karachi, has failed to deposit the federal excise duty and sales tax amounting to Rs 5,534.20 million.

According to rule 41-A of the Federal Excise Rules 2005 read with Table-II of First Schedule of the Federal Excise Act 2005, federal excise duty on services provided by aircraft operators in respect of travel air passengers within the Pakistan and international air travel of passengers embarking from Pakistan is payable by airline by the 15th day of the following second month.

Pakistan International Airline received Rs5,443.20 million and Rs91 million from air passengers under the head of federal excise duty  (FED) and sales tax (ST) but not deposited in national exchequer.  FBR also directed to the concerned officers to fix the responsibility against persons at fault and expedite the recovery and legal proceedings against the Pakistan International Airline and report to Federal Board of Revenue.