Pakistan's Mobilink has bank accounts frozen by authorities

Pakistani operator Mobilink has had all of its bank accounts frozen by the country’s Federal Board of Revenue (FBR), as the operator allegedly owes Rs8.6bn ($93m) in taxes to the authority.

The amount is owed to the exchequer on account of mis-declaration of sales tax and federal excise duty, the authority said in a statement.

The FBR claims that Mobilink collected the sales taxes from consumers but failed to pass them on to the government. It is now seeking to “recover the amount from the company through attachment of Bank accounts, blocking of imports and recovery through suppliers of the company, which include other telecom companies as well as the Pakistan Telecommunication Authority.”

Responding to FBR's action, Mobilink said it has clarified that the FBR’s ruling on Sales Tax and federal excise duty is still under consideration.

In its statement, the firm said that it is one of the largest corporate tax payers in Pakistan, and has “always remained at the forefront of making its due contribution to the nation’s exchequer”, noting that it paid Rs34bn in taxes in 2011 alone.

“Over its 17 year history of operations, Mobilink has remained committed to Pakistan, and respectful of all laws, including tax laws, which govern over Pakistan”, Mobilink's statement concluded.