Pakistan’s aviation sector is facing fresh scrutiny over claims that foreign airlines transfer billions of dollars abroad through ticket sales every year. Imran Aslam Khan, founder of the Aircraft Owners and Operators Association, estimates the annual outflow at $2.4 billion.
He has urged the federal government to investigate airline ticket payments and address concerns surrounding offshore transactions. Moreover, he wants authorities to strengthen tax oversight and ensure ticket revenues enter Pakistan’s regulated financial system.
Foreign Airlines Accused of Transferring $2.4 Billion Annually
Imran Aslam Khan has raised the issue in a letter to Federal Finance Minister Mohammad Aurangzeb. He expressed concerns about possible tax evasion involving airline ticket sales processed through offshore payment gateways.
According to his assessment, foreign airlines transfer approximately $2.4 billion annually from Pakistan through ticket sales. He warned that billions in revenue generated through these transactions could remain outside Pakistan’s formal financial system.
Consequently, he called on the finance minister to intervene and examine the payment arrangements used by foreign airlines operating in the country.
Association Demands Five-Year Forensic Tax Audit
The Aircraft Owners and Operators Association has called for a comprehensive five-year forensic tax audit of all airlines operating in Pakistan.
The proposed audit would examine ticket revenues, payment channels and potential tax liabilities. Furthermore, it could help authorities investigate whether airlines properly report their earnings and meet applicable tax obligations.
The association believes stronger financial scrutiny is necessary to address concerns surrounding offshore ticket payments and revenue transfers.
Demand for State Bank-Regulated Payment Gateways
Another major demand concerns the processing of airline ticket payments. Imran Aslam Khan has proposed that payments for flights arriving in and departing from Pakistan should pass through gateways regulated by the State Bank of Pakistan.
Such an arrangement would bring ticket transactions under a more regulated payment structure. It would also provide authorities with greater oversight of money collected through airline bookings.
Additionally, he has called for a mechanism allowing the Federal Board of Revenue (FBR) to collect taxes directly on airline ticket sales.
FBR Asked to Obtain Complete Passenger and Ticket Records
The association has also demanded that airlines provide the FBR with comprehensive passenger and ticket sales records.
According to the proposal, these records would allow the tax authority to examine ticket revenue and monitor tax collection more effectively.
Moreover, access to detailed sales information could help the FBR identify discrepancies between reported earnings and actual ticket transactions.
The demands place foreign airline revenues and offshore payment arrangements under renewed scrutiny. However, the proposed audit, payment regulations and reporting mechanism remain demands put forward by the association.
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