Dear Members:

السلام عليكم

CONGRATULATIONS TO ALL MEMBERS. The sagacity of Secretary Aviation/Chairman PIA enabled him to acknowledge the stand-point of PALPA on the irrational tax imposed on the Flying Allowance of pilots, and in realization of the financial hardships being faced due to its imposition. The hectic efforts of PALPA have caused issuance of a letter by Aviation Division on 24th January 2014 wherein they have informed that a summary has been moved through Finance Division regarding revision of Tax on pilots’ salary, Flying Allowance and Concessional Passages, the summary have been cleared by the PM’s office, after which the Finance Minister has approved PALPA’s proposal. The salient features of the approved proposal are as mentioned below:-

a) The Flying Allowance equivalent to Basic Salary shall be made part of the Basic Salary, and taxed at par with the other salaried classes, and,

b) The remaining Flying Allowance shall be taxed at the rate of 05 % (Five Percent) only.

The above arrangement shall provide a big relief to the hard-working pilot fraternity. It has been possible only with the support and compassion of the Secretary Aviation/Chairman and Special Assistant to Prime Minister on Aviation, who also happens to be a very experienced pilot himself. We acknowledge and appreciate their understanding of this serious issue, and their support in resolving this festering issue amicably.

While it is a matter of great satisfaction for all of us, PALPA EXECUTIVE COMMITTEE appreciates and extends gratitude for the support extended by the membership in exercising patience and restraint and letting PALPA get the issue resolved in a decent manner. Congratulations to the membership.

The letter is available with PALPA but cannot be disseminated since it is issued by the Government. However it is available to be seen by the membership at any time during office hours at PALPA.

Yours sincerely,

Capt. Suhail Baluch