FBR firm on buying new vehicles for staff

Board's chief says Senate panel's objections will be answered appropriately

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KARACHI:

The Federal Board of Revenue (FBR) would go ahead with the purchase of over 1,000 new vehicles for its officers despite strong objections raised by the Senate Standing Committee on Finance, FBR Chairman Rashid Mahmood Langrial said on Sunday.

Talking to reporters at a ceremony to mark the International Customs Day in Karachi, Langrial emphasised that the new vehicles were necessary for new officers for their field trips to collect taxes and meet the FBR's revenue target for the financial year.

Last week, the Senate's Standing Committee on Finance expressed concern over the purchase of 1,010 vehicles worth Rs6 billion and instructed the FBR to halt the process. Committee member Faisal Vawda urged the FBR to address this issue of Rs386 billion revenue shortfall before going for the purchases.

At his media talk, Langrial reaffirmed his determination to purchase the vehicles. "The FBR officers need the vehicles for tax collection. As per the cabinet decision, 1,010 vehicles will be purchased for tax officers," he told the journalists.

"These are young officers, how will they collect sales tax if they do not have proper transport? Sales tax cannot be collected unless you visit the site. The purchase will help achieve the tax collection target set for the fiscal year 2024-25," he added.

Responding to a question about the standing committee's objections, the FBR chairman explained that the committee had raised objections to the procedure, and not to the purchase itself. "We will review this procedure and the objections will be answered appropriately and positively."

When asked about the re-installation of live tracking system on vehicles, carrying containers, from the Pakistani ports to factories and Afghanistan, he said that the live tracking system had not been abolished rather is was being improved.

He added that the contract with the previous tracking company was terminated to break its monopoly over several years. "The new tracking system will be implemented within two to three months under which tracking sensors will be installed on both vehicles and containers," he said.

"The FBR has received the bids. The DG [director general concerned] is likely to announce the names of new applicants this week," he said, adding that the goods delivery system would be made stronger, transparent, and more secure.

Langrial expressed his optimism that the FBR would achieve the revenue collection target for fiscal 2024-25. Since Karachi was the country's commercial hub and a port city, and also housed the head offices of big businesses, He stressed, the city would remain the leading centre of tax collection.

When questioned that the required funds were not being spent on the development of Karachi, unlike the huge tax collections from the city, the FBR chairman said that this matter was settled in the Constitution.

The FBR chairman informed that Prime Minister Shehbaz Sharif had formed a task force for the housing sector. The biggest problem of this sector was the high transaction taxes and "we are reviewing this issue". He said that the Competition Commission of Pakistan should work on the issue of cement prices.

Earlier, addressing the ceremony as the chief guest at the Customs House, Langrial said that Pakistan Customs had achieved significant success in modernising its performance, including the implementation of the Pakistan Single Window (PSW) and Faceless Customs Assessment (FCA) System.

He said that the trade bodies of Karachi were happy with of introduction of the PSW and FCA systems, which had made the trade process faster, transparent and easier. He added that those systems had resulted in significant increase in revenues and enabled the clearance of export goods in a short time.

Langrial described the International Customs Day's theme for 2025 "Customs delivering on its commitment to efficiency, security and prosperity" as very important for Pakistan Customs as it strove to make itself a modern, dynamic and future-thinking institution.

Later, Langrial distributed certificates of appreciation among the officers on their outstanding performance. On the occasion, the FBR Chairman also hoisted the flag, laid floral wreaths at the Martyrs' Monument and recited Fateha.

Collector Customs Enforcement Karachi, Moinuddin Wani, Member Customs Operation, FBR, Junaid Jalil also addressed the ceremony. The event was attended among by diplomats from Oman, Indonesia, Kuwait, Russia and UAE consulates, senior officers, and business social figures.

The International Customs Day is celebrated all over the world on January 26. Like in previous years, this year too, the Day was celebrated in all the collectorates of Customs across Pakistan, including the grand ceremony at the Customs House in Karachi.