Islamabad:
Two major hurdles to PIA’s privatization have been removed after the IMF approved waiving of the 18 percent general sales tax on PIA’s purchase of new aircraft and a debt park of Rs 45 billion.
It should be remembered that this year the government had parked the debt of 623 billion rupees by creating a holding company for the privatization of PIA.
But despite this, PIA still has a debt of Rs 45 billion on its balance sheet, while 18 percent sales tax is imposed on the purchase of new planes. were done
They had demanded to abolish 18% sales tax on the purchase of new ships and to transfer the debt of Rs 45 billion to the holding company, but due to IMF conditions, the government could not fulfill these demands of the buyers.
However, sources say that the IMF has now allowed the government to waive 18 percent sales tax on the purchase of new aircraft and transfer Rs 45 billion debt to the holding company, after which PIA has now been privatized. The road has been paved.
Sources say that the 18% general sales tax has been allowed to be waived only for aircraft that will be operated on international routes, while it will not apply to aircraft purchased to operate on domestic routes, so that local airlines Do not be harmed.
