The federal government has decided to freeze the purchase of 1,010 vehicles for Federal Board of Revenue (FBR) officers following serious allegations raised by Senator Faisal Vawda. Speaking at a Senate Standing Committee on Finance meeting, Vawda claimed he had received death threats from tax officials after opposing the procurement and accused them of raiding an automaker’s offices.
FBR Chairman Rashid Langrial confirmed the suspension of the procurement process, stating that alternative options are now under review. This decision follows an intervention from the Prime Minister’s Office, which sought explanations regarding irregularities in the vehicle acquisition process.
The Senate committee had been discussing a broader plan to procure 1,087 vehicles—each up to 1,300cc—for grade 17 and 18 officers at an estimated cost of Rs5.6 billion. The FBR had already placed an initial order for 1,010 vehicles with Honda Atlas, a deal Vawda criticized for lacking competition. He also questioned the whereabouts of 100 previously acquired FBR vehicles, alleging they were being used for personal purposes by officials.
Sources revealed that some customs officers had distributed confiscated luxury vehicles without due process, and these cars remain unaccounted for. Vawda suggested a cost-sharing model for official vehicle procurement instead of relying on public funds. Senator Shibli Faraz echoed concerns, calling for an investigation into how Honda Atlas was chosen for the contract.
Vawda further claimed he had identified 54 top corrupt officials within the FBR and had evidence of assets being held under false names. In response, Langrial defended the FBR, asserting that last April, a thorough cleansing of corrupt officers was conducted with the help of intelligence agencies.
The Senate committee has recommended involving the Federal Investigation Agency (FIA) and the Public Procurement Regulatory Authority (PPRA) to examine the procurement’s transparency. Meanwhile, Finance Minister Muhammad Aurangzeb emphasized the urgent need for technological advancements within the FBR to curb corruption. He pointed out that many individuals would willingly pay higher taxes if they did not have to deal with the FBR in its current state.
Aurangzeb also introduced reforms for the upcoming budget, ensuring early finalization of proposals by April, preventing last-minute surprises for coalition partners and the business community. He reiterated that from the next fiscal year, tax policy formulation would be separated from FBR operations.
During the meeting, the committee was briefed on a revenue shortfall of Rs384 billion in the first half of the fiscal year, with total collections reaching Rs5.624 trillion—falling below the Rs6.009 trillion target. Despite an increase in the tax-to-GDP ratio from 9.5% to 10.8%, it remains well below the 13.6% target under the IMF program, significantly lagging behind India’s 18% tax-to-GDP ratio.
