PIA Gets FBR Tax Penalty Waiver After New Chairman’s Appointment

The Federal Board of Revenue (FBR) has exempted Rs. 4.29 billion in default surcharges and penalties payable on the current income tax liabilities of Pakistan International Airlines Corporation Limited (PIACL).

The FBR issued SRO 1129(I)/2026 on Thursday.

Almost 2 weeks ago, Lt Gen (retd) Anwar Ali Hyder was appointed the first PIACL Chairman following the transfer of management control to the Arif Habib Corporation-led consortium.

According to the notification, the exemption covers Rs. 263.82 million in default surcharges and penalties related to withholding tax (other than salary) for the period from April to December 2024, as well as Rs. 4.03 billion related to advance income tax for the period from May 2024 to June 2025.

The total exempted amount stands at Rs. 4.293 billion.

The current tax liabilities remain subject to final determination. The exemption has been granted to facilitate the successful completion of PIACL’s divestment process, ensure the timely execution of bid documents, and fulfill the conditions agreed upon with the successful bidder.

The FBR further stated that the exemption is conditional upon PIACL paying its current income tax liabilities within four years, following a one-year grace period, in equal annual installments after the First Completion, as defined in the Share Purchase and Subscription Agreement between the Government of Pakistan and the successful bidder.