Senate blocks FBR's purchase of over 1,000 Honda City cars for its staff

The Senate Finance Committee on Wednesday barred the Federal Board of Revenue (FBR) from purchasing new Honda City 1.2L CVT vehicles for its staff, intended to facilitate their operations for tax collection.

Committee Chairperson Senator Saleem Mandviwalla strongly objected to the FBR’s decision, questioning, “Why is the FBR purchasing over a thousand vehicles? Were field officers previously collecting taxes on bicycles?”

Other senators also voiced concerns over the bulk purchase of cars for tax officers amid the country's dire economic conditions, where the common man is burdened with heavy taxes.

On January 13, the FBR announced plans to buy 1,010 vehicles equipped with modern features, including a navigation system, reverse camera, high-grade interior, four free periodic maintenance sessions, and an extended warranty of four years or 100,000 km.

The officers were also to receive training in using the vehicles’ tracking systems.

The FBR proposed making an advance payment of Rs3 billion for 50 vehicles, with half of the payment for the remaining vehicles. The first batch of 75 vehicles was expected to arrive in January, followed by 200 in February and 225 in March.

However, the substantial expenditure drew sharp criticism in the Senate.

Senator Faisal Vawda called the vehicle procurement contract “shady,” expressing suspicion of corruption. “If this purchase is not stopped, it will become a major corruption scandal,” Vawda warned.

FBR officials defended the move, stating that the vehicles would enhance the authority’s operations and enable officers to perform their duties more efficiently.

Despite these justifications, Senator Mandviwalla and other committee members disapproved of the purchase, expressing dissatisfaction with the urgency of the matter.