The Federal Board of Revenue (FBR) has reaffirmed its contentious decision to procure 1,010 Honda vehicles for its officers, sparking intense criticism from the Senate Standing Committee on Finance.
Allegations of corruption and mismanagement have overshadowed the announcement, as lawmakers question the rationale behind this significant expenditure during a period of fiscal challenges.
Chairman Rashid Mahmood Langrial defended the move on Sunday, asserting that the new vehicles are essential for field operations aimed at achieving the ambitious tax collection target of Rs12.9 trillion for the fiscal year 2024-25. Speaking at an event marking International Customs Day in Karachi, Langrial maintained, “The cars are indispensable for enabling officers in BS-17 and BS-18 to conduct site visits and collect sales tax effectively. This is a Cabinet-approved decision, and we are determined to implement it.”
The controversy erupted after the Senate Standing Committee, led by Senator Faisal Vawda, criticized the purchase, labeling it as a misuse of public funds amidst a significant tax revenue shortfall. The FBR fell Rs386 billion short of its Rs6,009 billion target during the first half of FY25. Senator Vawda argued, “This blatant misuse of taxpayer money cannot be tolerated. Rewarding officials with cars while failing to meet revenue targets is nothing short of open corruption.”
Langrial, however, dismissed these allegations, emphasizing that objections raised by the Senate were procedural rather than substantive. “We will review the procurement procedure to address concerns, but the necessity of these vehicles remains unquestionable,” he said, adding that the FBR is committed to addressing the committee’s reservations “with all due respect.”
In a related development, Langrial provided updates on the FBR’s efforts to strengthen the live tracking system for containerized cargo. He clarified that the system, aimed at enhancing transparency and security in goods transportation, is being upgraded rather than discontinued. “New tracking sensors will be installed on both vehicles and containers within two to three months. This will address vulnerabilities and minimize the risk of smuggling,” he stated. The previous tracking contract was terminated to dismantle monopolistic practices.
Langrial also acknowledged concerns over high transaction taxes in the housing sector, revealing that Prime Minister Shehbaz Sharif has formed a task force to address the issue. He reiterated Karachi’s pivotal role as the commercial hub, attributing its leadership in tax collection to the presence of major corporate head offices.
As the FBR navigates criticism and operational challenges, its determination to balance fiscal accountability with ambitious revenue goals remains a topic of national debate.