The Federal Board of Revenue (FBR) has decided to procure 1,010 brand-new Honda City 1.2L CVT vehicles at an estimated cost of Rs. 6 billion. The move, formalized through a notification issued on January 10, 2025, addressed to Honda Atlas Cars (Pakistan) Limited, has sparked widespread debate and criticism, particularly on social media platforms.
Details of the Procurement
The acquisition will be carried out in two phases. Initially, the FBR will disburse Rs. 3 billion to secure 500 vehicles, while the remainder will be partially funded in the second phase. The distribution timeline indicates deliveries commencing in January 2025, with the process set to conclude by May. Specifically:
- 75 cars will be delivered in January
- 200 vehicles will follow in February
- The remaining units will arrive over subsequent months
The vehicles come with an array of features aimed at enhancing functionality, like, navigation systems with reverse cameras, premium-grade interiors, free periodic maintenance for 20,000 km or 12 months, four-year extended warranties, tracking systems with a one-year service plan and FBR-branded logos on the doors and windscreens.
Officials from the FBR have defended the purchase, stating that these vehicles are essential to improving operational efficiency, particularly in areas such as tax collection and official duties. They argue that reliable and modern vehicles are critical to ensuring the department can function effectively and meet its revenue targets.
Public Outcry
Despite the FBR’s rationale, the decision has ignited a fierce backlash. Critics on social media and elsewhere have lambasted the procurement as tone-deaf and irresponsible, especially given Pakistan’s ongoing economic struggles. Key concerns include:
- Rising taxes, particularly on salaried individuals, which have already burdened the public.
- The perception of this massive spending by government institutions at a time when austerity measures are needed.
- Questions about whether existing vehicles within the FBR fleet could have been refurbished or repurposed at a lower cost.
While the FBR insists the vehicles are necessary for enhancing operational capabilities, many view the expenditure as an unnecessary luxury during challenging economic times.
The audacity and insensitivity of this corrupt Government and it’s Departments is unbelievable – the Public (Awaam) are struggling with high income taxes, sales taxes, high fuel & energy costs and rampant inflation.
What form of austerity allows Rs 3bn to be spent on cars, when the public is struggling with daily cost of living? (the total cost of 1010 cars is likely to be higher).
How is this going to incentivize and motivate the public and businesses to sign up and become Filers? Knowing that their hard earned taxes are being used for cars for the FBR high-ups. Offering cars to staff is an alternative benefit instead of a salary increase – which would be liable to income tax. No doubt, in a few years time, these cars will be sold off with big discounts to FBR staff…
Authorisation of such expenditure is first discussed in a transparent manner and open to scrutiny – it should not be announced after the Order has been placed. In terms of procurement, such a large amount of expenditure would normally go out to Tender – it seems that this was a “done deal” between the Government, FBR and Honda. It just so happens that the Honda car factory is in Lahore whilst the majority of car manufacturers are in Karachi…
The corruption and incompetence of this Government and it’s cronies knows no bounds, prior to this they were trying to order Land-Cruisers for themselves! And the rest of the time this Government is using helicopters to transport themselves – the cost of one helicopter journey (internally within Pakistan) could pay for a nurses / doctors salary, a teachers salary, a students scholarship/grant etc…
The Public is told to manage with Austerity…does this Government and it’s Departments think the Public are fools? There is no business case to justify this expenditure – why can’t the FBR ride motorbikes? or bicycles? which are much more environmentally friendly!