KARACHI: The Federal Board of Revenue (FBR) has asked the Civil Aviation Authority (CAA) to suspend  local flight operations of  Shaheen Air for its failure to pay Federal Excise Duty (FED) amounting to millions of rupees.

The FBR has also directed a bank to attach all the accounts of the company with immediate effect.

According to a letter sent to the CAA Director General, an amount of Rs 521.397 million is recoverable from the Shaheen Air International Limited under Federal Excise Act 2005 read with Federal Excise Rules 2005.

The Federal Excise Duty  payable for the month of March, 2018 has not been paid up to due date which is 15-05-2018, the letter said.

"In exercise of powers conferred under Sub-Rule (c) of Rule-60 of Federal Excise Rules, you are here by required to immediately stop local flight operations of M/s Shaheen Air International Limited till the amount mentioned above is recovered and information in this regard is issued to you by this office," the letter said.

Beside suspending the flight operations, the FBR has also directed a bank to attach accounts of the airline with immediate effect and also "keep all Pak Rupees Bank accounts attached" of the Shaheen Air till it pays the government dues. 

Meanwhile, Shaheen Air International (SAI) spokesperson has stated that there is no conflict between the airline and Federal Board of Revenue over payments as this is a usual payment delay issue.

Zohaib Hassan, Director Marketing, SAI stated “Our regular operations are on and flight schedule is as per normal. We are a law abiding corporate entity and we are aware of our duties and responsibilities. Shaheen Air pays millions of rupees every month in terms of taxes and Shaheen is clearing the outstanding amount on priority basis”.