FBR Defends Procurement of Over 1,000 Vehicles Amid Senate Committee Concerns

ISLAMABAD, Jan 27 (Alliance News): The Federal Board of Revenue (FBR) has defended its decision to procure more than 1,000 vehicles, citing enhanced mobility and enforcement as critical to expanding Pakistan’s tax net.

The assurance comes as the Senate Standing Committee on Finance and Revenue raised concerns over the transparency and integrity of the procurement process.

In a letter to the Senate committee, the FBR justified its Rs6 billion procurement plan, emphasizing the need for outreach to non-filers through physical surveys and on-spot inquiries.

The purchase, scheduled in two phases, involves 1,010 vehicles, with the first 500 being delivered between January and March 2025 and the remaining by May. An advance payment of Rs3 billion has already been made for the first batch.

The FBR argued that mobility is essential for achieving its Rs1.3 trillion tax collection target, noting significant challenges such as unregistered taxpayers and fraudulent registrations.

It highlighted that out of 260,000 potential sales tax-paying manufacturers, only 42,000 are currently registered, with even fewer fully compliant.

The tax authority clarified that vehicles would be restricted to field units and frontline officers of Grades 18 and 19. To prevent misuse, all vehicles would feature branding stickers, trackers, and a centralized tracking mechanism.

FBR Chairman Rashid Langrial defended the move, calling it “necessary for departmental operations.”

The FBR also assured compliance with Public Procurement Regulatory Authority (PPRA) rules, stating that vehicles are being purchased from local manufacturers at authorized prices.

Finance Minister Muhammad Aurangzeb has pledged transparency in the process, while the FBR reiterated its commitment to improving enforcement mechanisms, especially in regions with limited public transportation options.