FBR Defends Purchase of New Vehicles Amid Senate Criticism, A Step Toward Enhancing Tax Collection.

The Federal Board of Revenue (FBR) recently faced pushback from the Senate Standing Committee on Finance and Revenue over its decision to purchase new vehicles for its officers. Senator Faisal Vawda called for an immediate halt, accusing the FBR of rewarding its officers with vehicles despite a significant tax shortfall.

“This is blatant corruption, and we won’t let it go unchecked,” Senator Vawda declared during the Senate committee meeting, accusing the FBR of mismanaging government funds.

In response, FBR chief Langrial defended the decision, explaining that new vehicles were essential for tax officers to carry out field operations and collect taxes effectively. Speaking to the media during the International Customs Day 2025 event in Karachi, Langrial stated, “We will proceed with the purchase, as this was a Cabinet decision.”

Langrial clarified that the committee’s concerns were more about the process than the actual purchase of the cars. “We will review the procedure and address the committee’s objections respectfully,” he said.

He emphasized that the new vehicles are critical for fieldwork, particularly for young officers who need reliable transportation for site visits, which are necessary for collecting sales tax. “Without proper transportation, how can sales tax be collected?” he questioned.

Despite facing challenges, Langrial reassured that the FBR was on track to meet its tax collection target of Rs 12.9 trillion for the fiscal year 2025. However, the FBR fell short by Rs 386 billion during the first half of the fiscal year, failing to meet its target of Rs 6,009 billion.

On another matter, Langrial discussed efforts to enhance the security and transparency of Pakistan’s goods transportation system. The FBR has received bids to reinstall the live tracking system on vehicles and containers, which will improve monitoring of cargo moving to factories and Afghanistan.

He addressed recent reports about the suspension of satellite tracking for containers going to Afghanistan, noting that the system was being improved rather than ended. “The tracking system isn’t gone; it’s being upgraded,” Langrial said. He added that new tracking sensors would be installed on both the vehicles and the containers, with the system expected to be in place within two to three months.

Langrial also assured that the partial manual system in use for monitoring cargo transportation was functioning adequately. The decision to end the contract with the previous tracking company was made to break its monopoly, he explained.

Responding to another query, Langrial called Karachi the commercial capital of Pakistan, highlighting its critical role in the country's tax collection efforts, due to the presence of major business headquarters in the city.

On the housing sector, Langrial informed that Prime Minister Shehbaz Sharif had established a task force to address issues in the sector. The primary concern, he said, is the high transaction taxes, which are currently under review by the FBR