A Senate panel has recommended canceling the Federal Board of Revenue’s (FBR) contract for purchasing 1,010 vehicles worth Rs5.6 billion for tax officers, citing concerns over favoritism in the procurement process.
According to a news report, the Senate Standing Committee on Finance decided to formally write to Prime Minister Shehbaz Sharif, the finance minister, and the Accountant General of Pakistan Revenues (AGPR) to halt the purchase.
The controversy stems from FBR’s plan to procure 1,087 vehicles of up to 1,300cc capacity for officers in grades 17 and 18. Senator Faisal Vawda criticised the selection of Honda Atlas as the contractor, claiming the process lacked competition. He alleged that Indus Motors offered a lower price and a two-year warranty compared to Honda Atlas’s one-year warranty, yet the latter was awarded the contract.
“We will not let Pakistan suffer billions in losses. Why buy vehicles worth Rs6 billion? A summary was created to benefit one company. You want to replace affordable vehicles with expensive ones, we won’t let that happen,” Vawda said.
FBR Chief Administrator Freedoon Sheikh defended the decision, explaining that Toyota Yaris was ineligible as its engine capacity exceeded the approved 1,300cc limit. He added that the cabinet had approved the vehicle specifications before the procurement process began.
FBR justified the purchase by highlighting the need for mobility to locate non-filers, verify tax returns, and conduct on-site inspections, tasks that cannot be achieved solely through digital tools.
“Achieving the Rs13 trillion tax target without mobility is a daunting task,” the FBR stated, adding that the vehicles would be allocated exclusively to field units, not headquarters.
The committee also reviewed Honda Atlas’s offer, which included navigation systems, a reverse camera, high-grade interiors, one year of free maintenance, and an extended warranty for the fourth year, contingent on regular servicing through authorised dealers.
