KARACHI: The Federal Board of Revenue (FBR) is mulling to confiscate an airplane or assets of a private airline for auctioning to recover an outstanding Rs2.93 billion as unpaid taxes, sources said on Thursday.
The sources in the Large Taxpayers Unit (LTU) Karachi said the private airline collected the federal excise duty on the sale of tickets on behalf of the FBR, but failed to deposit the same into the national kitty.
The LTU sources said the airline was asked several times to pay the outstanding Rs2.93 billion, including the principal Rs568 million, default surcharge of Rs88.95 million and penalty of Rs2.27 billion.
“Despite repeated notices, the airline did not settle the said amount due to financial crunch,” said a source. On August 30, the LTU froze the airline’s bank accounts for the recovery, but couldn’t recover the amount.
A source said FBR is empowered, under the law, to recover any defaulted funds through the attachment of properties and assets of the company’s officials.
Under the federal excise rules, an airline is responsible to deposit the excise duty for each month by the 15th day of the following second month. “In case the duty is not deposited by the airline by the due date, it shall, in addition to the payment of duty, be liable to pay default surcharge and also liable to penalty of Rs10,000 on every such ticket on which excise duty has not been paid,” read the rules.