Senate orders halt on FBR’s Rs6b vehicle purchase

Senators raise concerns over the need for 1,010 vehicles amid economic strain, questioning the FBR's decision.

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The Senate Finance Committee, chaired by Senator Saleem Mandviwala, has directed the Federal Board of Revenue (FBR) to halt its controversial plan to procure 1,010 vehicles, a move estimated to cost over Rs6 billion.

The decision, which was intended to provide vehicles for FBR field officers, sparked outrage among committee members, who criticized it as “shady” and “a way to corruption.” The issue was raised during a meeting of the committee, which discussed the FBR’s procurement plan.

Senators expressed concerns over the necessity of purchasing such a large number of vehicles at a time of economic strain, with many questioning the transparency and intent behind the deal.

Committee members questioned the need for 1,010 new cars and demanded further clarification from FBR officials on the decision-making process.

During the session, Chief Admin FBR Fareedon Din Sheikh explained that the purchase was part of the Prime Minister's transformation plan, intended to provide new vehicles for grade 17 and 18 officers in field formations.

Sheikh justified the decision by stating that the purchase was made in accordance with Public Procurement Regulatory Authority (PPRA) rules, and the vehicles will be sourced from Honda and Toyota.

However, the committee expressed its dissatisfaction with the scale and timing of the purchase, directing the FBR to halt the order immediately.

The FBR had already issued a Letter of Intent to a company for the procurement, with an advance payment of Rs3 billion set for the first batch of 500 cars. The remaining vehicles were expected to be delivered between January and May, 2025.

The parliamentary panel’s concerns come amid ongoing discussions about tax reforms and budget proposals for the 2025–26 fiscal year, as the FBR seeks to increase revenue and streamline tax laws.

The FBR has also been consulting with key business associations to finalize proposals for phasing out tax exemptions and improving the tax collection system.