Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial on Sunday defended the decision to purchase 1,010 vehicles for tax officers, emphasising their necessity for achieving the Rs 12.9 trillion tax collection target set for FY25.
His statement came in response to objections raised by the Senate Standing Committee on Finance and Revenue, where Senator Faisal Vawda had criticised the move, terming it “open corruption” and a misuse of government funds especially after the ongoing tax shortfall.
Addressing the media during the International Customs Day 2025 event in Karachi, Langrial reiterated the Cabinet’s approval for the purchase and assured that concerns of the cabinet were about the procurement procedure, which would be reviewed and addressed respectfully.
“Young officers need proper transportation for field visits to collect sales tax,” Langrial stated, maintaining that the vehicles would be vital for effective tax collection operations.
The FBR faced a Rs 386 billion shortfall in the first half of FY25, collecting Rs5,623 billion against a target of Rs 6,009 billion. Despite this, Langrial remained confident about meeting the annual target.
On another front, Langrial announced that bids had been received for reinstating live tracking systems on vehicles and containers to enhance the transparency and security of goods transportation. The previous tracking system was discontinued to eliminate monopoly, and a new system with sensors for both vehicles and containers is expected to be operational within two to three months.
Earlier, media reports highlighted concerns about increased smuggling risks after the temporary shift to human surveillance for monitoring Afghan cargo. Langrial clarified that the partial manual system is performing satisfactorily and that Karachi remains pivotal in tax collection due to its concentration of corporate head offices.
Regarding the housing sector, the FBR chairman revealed that Prime Minister Shehbaz Sharif has formed a task force to address high transaction taxes, with reviews currently underway.
