FBR Freezes PTA Accounts to Recover Rs. 2 Billion

PTA-logoLarge Tax-payer Unit (LTU) Islamabad of Federal Board of Revenue yesterday recovered Rs. Rs 2.038 from Pakistan Telecommunication Authority by freezing its accounts.

According to sources, bank accounts were held and then freed after the recovery of unpaid taxes from year 2006.

Pakistan Telecommunication Authority and LTU Islamabad are long running this dispute over taxes.

There was a time when PTA hadn’t paid any taxes for ten years valuing over Rs. 10 billion. PTA claims that it is a government body itself and must pay all the revenues to government exchequer itself, however, LTU Islamabad is of the view that taxes must be collected from the revenues that PTA generates – in accordance with law – and this way the money will ultimately go to government exchequer.

LTU Islamabad had attached PTA accounts last year as well for similar reasons, and had recovered Rs. 3.6 billion.

FBR had collected PKR 3.43 billion in 2010 by carrying a similar action against the telecom authority.

It merits mentioning here that PTA collects various license fee and other dues from Telecom operators, which according to FBR are termed as revenues and must be taxed.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Raja Maja

    very nice.

  • Khurram ShahzAd

    Taxing PTA makes no sense. As All earnings of PTA go directly to government, why fbr to cut its margin and then pay that to government from their end when its directly going there.

    • FF

      Everyone has its own KPI’s :D

      • Khurram ShahzAd

        And what you mean by KPI’s ?

    • XeoX

      Because they can hide their inefficiencies of not recovering taxes from the parties from whom they are suppose to . So they get this money and show this as recovered tax to show they are very efficient in recovering taxes.

      • Khurram ShahzAd

        Rightly Said, I fully Agree.

  • Ali Salman

    LOL..so PTA didn’t learn anything from last two years’ experience ?

  • Hamad Dar

    recovered Rs. Rs 2.038 from Pakistan Telecommunication Authority under
    the head of unpaid taxes by freezing its accounts in Islamabad.?

  • Khurram ShahzAd

    Taxation from govt to semi-govt or govt to private organizations make sense, but how would FBR defend this nonsense govt to govt orgs taxation