Senate Takes Notice of FBR’s Procurement of 1,010 Honda Cars

Senate Takes Notice of FBR’s Procurement of 1,010 Honda Cars

Islamabad, January 14, 2025 – The Senate Standing Committee on Finance and Revenue has raised concerns over the Federal Board of Revenue (FBR)’s recent acquisition of 1,010 new Honda cars for its officials. The committee has formally directed the FBR chairman to provide detailed information regarding this procurement, citing the need for transparency and fiscal responsibility.

In its directive, the Senate committee emphasized the importance of a clear justification for the purchase, especially considering the significant number of vehicles involved. The committee has requested an explanation of the necessity of this acquisition at this time and its alignment with the FBR’s operational goals.

Additionally, the Senate committee has sought information on the procurement process, including adherence to relevant guidelines, tendering or bidding procedures, and the approvals obtained. These inquiries aim to ensure that the transaction complies with principles of financial prudence, accountability, and transparency.

The committee’s notice comes after the FBR announced the purchase of 1,010 Honda City 1.2L CVT vehicles as part of its efforts to enhance enforcement capabilities and curb tax evasion. According to FBR sources, this acquisition is a strategic move to bolster operational efficiency and expand the tax net.

Official documents reveal that the FBR issued a Letter of Intent (LoI) to Honda Atlas Cars (Pakistan) Limited, confirming the procurement. The vehicles will be allocated to officers in BS-17 and BS-18 grades within the Inland Revenue Service (IRS) and Pakistan Customs Service (PCS). These officers play a critical role in enforcing compliance, particularly in implementing key systems such as the Point of Sale (POS) system, track and trace mechanisms, and digital invoicing protocols.

The FBR has stated that these vehicles are intended to facilitate field operations, improve tax collection efficiency, and enhance monitoring capabilities. By targeting non-compliant sectors and reducing tax evasion, the initiative aims to improve overall compliance and transparency in the tax system.

The Senate committee’s intervention underscores the importance of oversight in public spending, ensuring that such significant expenditures are justified and contribute effectively to the nation’s economic goals. The FBR is expected to present its detailed report in the coming weeks.