DAWN.COM

Today's Paper | April 29, 2024

Published 29 Jun, 2013 08:46am

Audit of PIA pilots

Apropos reports about the audit of PIA pilots and withdrawal of tax waivers to them, in Europe, US and the rest of the developed world, the highest paid professionals are doctors, engineers, scientists, lawyers, university professors, journalists etc. None of these highly qualified professionals working in Pakistan get a salary comparable to what their peers receive in the developed world.

The pilots of PIA get a salary comparable to airline pilots working in Europe etc. if you take the cost of living into account and their income tax deductions just like other salaried persons.

Many years ago airline pilots got tax-free flying allowance following precedent of the Paris Artists Convention, which gave this exemption based on their limited earning periods. This facility is no longer given by any airline in Europe, America or in developing countries in Asia.

The rationale for tax-free pilot salaries disappeared when waivers were given for serious medical ailments like heart patients, hearing/eyesight deficiencies, or other physical disabilities etc and is today totally unjustified now, that unlike other skilled aviation workers, they are being rehired after age of superannuation ie 60 years, while the rest of the ground staff stands retired.

Till 1996, the whole flying allowance component was tax free and thereafter a nominal 2.5pc tax was levied.

This facility was abused when over the years, restrictions by FBR that all allowances should not exceed more than 35pc of the total salary, was violated by making flying allowance and other such benefits forming almost more than 75pc of the gross salary.

Even the State Bank of Pakistan regulations are being violated by paying allowances, other than foreign DA in hard foreign currency, such as the LR Allowance.

An audit must be carried out for the requirements based on effective utilisation of all cadres working in PIA, now that the schedules are based on a fleet of 16 serviceable aircraft, while the employees per aircraft strength which is the highest in the world is based on a fleet of 38 aircrafts.

PIA is no longer the sole airline based in Pakistan with the eruption of other private airlines flying on domestic and international routes and the government must no longer submit to blackmail by its unions.

ABRAR KHOSAFaisalabad

Read Comments

Punjab CM Maryam’s uniformed appearance at parade causes a stir Next Story