Senate committee stops FBR from purchasing over 1000 vehicles

ISLAMABAD: The Senate Standing Committee on Finance and Revenue has stopped the Federal Board of Revenue (FBR) from purchasing 1,010 brand-new vehicles.

Earlier this month, the revenue department announced procuring new 1,010 Honda City 1.2L CVT cars at an estimated cost of Rs6 billion.

FBR officials said that these vehicles will be given to grade-18 officers and inspectors for collecting sales tax, income tax, federal excise duty, etc.

The department also issued a letter of intent on January 10, 2025, to Honda Atlas Cars (Pakistan) Limited for the purchase of vehicles.

However, during the meeting today at Parliament House, the Senate committee, under the chairmanship of Senator Saleem Mandviwala, took notice of FBR’s move to purchase brand-new cars.

Expressing the irk over FBR officials for the decision, the Standing Committee members stopped the tax collecting body from the procurement of vehicles.

Commenting on the board’s reason for the mass purchasing of cars, the chairman of the committee Saleem Mandviwala questioned whether officers were earlier using bicycles to collect different taxes.

Senator Faisal Vawda highlighted a tax shortfall of over Rs384 billion, adding that the FBR should meet the shortfall first to purchase vehicles.

He also strongly opposed the plan and called it a potential scandal and an example of corruption.

Vawda demanded that the FBR withdraw its purchase orders, emphasizing that the focus should be on addressing the tax shortfall before making such expenditures.

FBR official told the committee that the vehicle purchase was approved by the Economic Coordination Committee (ECC) and federal cabinet, adding that they have already issued the purchase order to Accountant General Pakistan Revenues (AGPR).

In response to that, Faisal Vawda warned of going to the Federal Investigation Agency (FIA) and National Accountability Bureau (NAB), if vehicles are purchased.