Last month, we informed you about FBR’s plan to procure 1,010 brand-new Honda City 1.2L CVT vehicles costing Rs. 6 billion. Soon after the news broke, the government faced an intense public outcry over the move, negating the government’s old tale of the austerity measures.
In a recent update, the Federal Board of Revenue (FBR) has hit the brakes on its plan to acquire 1,010 vehicles, citing the need for a thorough review by the Public Procurement Regulatory Authority (PPRA).
This move comes after transparency concerns were raised regarding the procurement process. Until the review is completed, the purchase remains on hold.
Justification for the Purchase
FBR Chairman Rashid Mahmood Langrial addressed the Senate Standing Committee on Finance, explaining the necessity of these vehicles. According to him, additional enforcement resources are crucial for identifying tax evaders and ensuring compliance, particularly in cash-based markets.
To ensure a fair procurement process, an internal FBR committee, led by Dr. Hamid Ateeq Sarwar, is supervising the purchase. Langrial also emphasized that Sarwar and other key officials involved have been recognized by intelligence agencies as some of the most honest tax officers in the country.
Senator Saleem Mandviwala reinforced the importance of following proper procedures. He insisted that the purchase must align with PPRA regulations and called for an independent review by the PPRA Board.
Public Backlash
Previously, the planned purchase has sparked public outrage. Many argued that such large-scale spending is insensitive, especially given Pakistan’s economic hardships. Concerns raised include:
- Rising taxes on salaried individuals, adding to financial burdens.
- The perception that government institutions are spending extravagantly when austerity is necessary.
- Whether existing FBR vehicles could be refurbished or repurposed at a lower cost.
While the FBR defends the purchase as a necessity for efficient tax enforcement, critics view it as an unnecessary expense at a time when financial discipline should be prioritized.
