Islamabad, January 12, 2025 – The Federal Board of Revenue (FBR) has announced the purchase of 1,010 Honda City 1.2 L CVT vehicles to bolster its enforcement efforts against tax evasion. This significant acquisition is part of the FBR’s strategy to enhance its operational capabilities and expand its tax net.
According to an official document, the FBR has issued a Letter of Intent (LoI) to Honda Atlas Cars (Pakistan) Limited, confirming the purchase. FBR sources reveal that the vehicles will be allocated to officers of the Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) in BS-17 and BS-18. The cars are intended to support a more robust enforcement drive, targeting tax evasion and encouraging compliance among non-compliant sectors.
These officers will be tasked with ensuring the effective implementation of key systems, including the Point of Sale (POS) system, the track and trace mechanism, and newly introduced digital invoicing compliance. This initiative aims to streamline tax collection and improve transparency within the system.
Special Specifications
The FBR has requested Honda Atlas Cars to include several custom features in the vehicles, such as:
• Navigation system with a reverse camera.
• High-grade interior for enhanced comfort.
• Free periodic maintenance for up to 20,000 kilometers or 12 months.
• An extended warranty covering four years or 100,000 kilometers, subject to regular maintenance at authorized Honda dealerships.
• FBR logos prominently displayed on the front doors and windscreen.
• A tracker system with one-year service charges of Rs 8,500 (exclusive of tax), with costs borne by the FBR.
Financial Details
The FBR will pay upfront Rs 3 billion for purchase of 1,010 vehicles (as full payment for 500 units and partial payment of balance amount for remaining 510 units), and the balance payment shall be made as and when delivery of the first batch is completed i.e. 510 units
The balance will be cleared upon the delivery of the first batch of vehicles. The phased delivery process is expected to be completed by May 2025.
Strategic Impact
This large-scale acquisition underscores the FBR’s commitment to strengthening its enforcement mechanisms. By equipping officers with advanced vehicles, the organization aims to enhance mobility, efficiency, and effectiveness in its operations. This move is expected to significantly contribute to cracking down on tax evasion and integrating more entities into the formal tax system.