FBR chief says new vehicles necessary for tax collection

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial defends the purchase of 1,010 new cars for FBR officers, stating that the vehicles are essential for officers to perform their duties efficiently, ARY News reported.

Speaking to media, Langrial emphasized that sales tax officials require vehicles to carry out their operations, and the new cars will facilitate their work.

The FBR chief also addressed concerns raised by a committee regarding the car purchase, saying that the FBR aims to achieve its tax collection targets.

Langrial noted that Karachi has the highest tax collection due to the presence of large companies and multinational headquarters in the city. Furthermore, he announced plans to install a tracking system in cars within the next 2-3 months.

The FBR came under severe criticism after deciding to purchase 1,010 cars, each with a 1200cc engine, for officers at a staggering cost of Rs 3 billion.

A Senate panel called for the cancellation of a contract to purchase 1,010 new cars for tax officers, citing concerns over the lack of competition in the bidding process.

According to Senator Mandviwalla, Chairman of the Senate Standing Committee on Finance, the contract was directly awarded to Honda Atlas without competition, despite Indus Motors offering a lower price of Rs200,000.

The Senate panel has decided to write to Prime Minister Shehbaz Sharif, the finance minister, and the Accountant General of Pakistan Revenues (AGPR) to halt the purchase.

Also read: FBR to buy over 1000 new cars for officers

It is worth mentioning here that the FBR made an upfront payment of Rs 3 billion for the vehicles, with the remaining amount to be paid in installments.

According to the Letter of Intent, the delivery of the vehicles is expected to take place from January to May, with 75 cars to be delivered in January, 200 in February, 225 in March, 250 in April, and 260 in May.

Moreover, the FBR has purchased these luxury cars from a company, despite facing a revenue shortfall of Rs. 386 billion.