Penalty and default surcharge: FBR grants over Rs4bn exemptions to PIACL

ISLAMABAD: The Federal Board of Revenue (FBR) has exempted amount of default surcharge and penalties, payable against the current income tax liabilities of the Pakistan International Airlines Corporation Limited (PIACL).

In this regard, the FBR has issued an SRO 1129(I)/2026 on Thursday.

According to the notification, the exempted amount of default surcharge/penalty included Withholding Tax (Other than Salary) of Rs263,821,746 (April to December 2024 period) and Advance Income Tax of Rs 4,028,821,290 (May 2024 to June 2025). Total exempted amount stood at Rs4,292,643,036.

The current tax liabilities are subject to the final determination, in order to successfully conclude the process for divestment of PIACL to the successful bidder, and to ensure timely execution of the bid documents and satisfaction of terms contained therein.

This exemption shall be subject to the condition that the current income tax liabilities of the PIACL, shall be paid to the FBR within a period of four years, following a grace period of one year in equal annual installments, after First Completion as defined in the Share Purchase and Subscription Agreement between Government of Pakistan and successful bidders, FBR added.

Copyright Business Recorder, 2026