Federal Board of Revenue (FBR) has revealed that Pakistan International Airlines (PIA) is in default of Rs 5.9 billion sales tax and tax authorities were stopped by the Economic Co-ordination Committee (ECC) of the Cabinet from recovery of the amount. The PIA collected Rs 5.9 billion sales tax from sale of tickets to consumers but did not deposit the amount to the government, a meeting of the sub-committee of the Public Accounts Committee was told by Member Inland Revenue Rahimutullah Wazir.
The meeting chaired by Sardar Ashiq Hussain Gopang sought a briefing from the FBR on pending recoveries of taxes till January 31, 2017. The FBR officials did not specify the period of sales tax collection by the PIA and stated when they pursued the pending amount against the PIA, a meeting of the ECC stopped them. The chairman of the FBR said that this was the government''s decision and they followed it.
The meeting was further informed that of the total Rs 5,042 million pending recoveries, Rs 104 million have been deposited and demands of recovery for the remaining Rs 4.93 billion were raised by RTO, LTO Karachi and others when the customs and sales tax audit were done separately. The committee chairman who, was displeased over the briefing and justification given by the FBR for non-recovery of the pending amounts questioned, "Tell us what do you want from this meeting?" He further stated that the pending amount received after the DAC meeting was very nominal.
However, the FBR chairman said that audit has been allowed in various cases and some people have also been arrested for recovery. He maintained that every effort was being made and added that other than the PIA''s Rs 5.9 billion, the recovery of the other remaining amounts would not be easy as they have been pending for last many years but the tax official would try to recover them.
Committee members said that tax officials have not provided any new information other than taking the figures (amounts) from the FBR register and presenting them to the sub-committee. The committee remarked that FBR and DAC results do not concur with each other and directed the FBR officials to hold a meeting of DAC within 15 days and all the paras should be taken to the DAC for verification. As long as these are not verified, the committee would not be able to settle them, remarked the committee.
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