KARACHI: Facing criticism over the planned procurement of over 1,000 vehicles, Federal Board of Revenue (FBR) Chairman Rashid Langrial defended the decision, calling it essential for field officers’ operations. Langrial addressed concerns on Sunday, days after the Senate Standing Committee on Finance and Revenue directed the plan to be scrapped.
Langrial emphasized that the procurement is necessary to support young officers in fulfilling their duties, such as conducting field visits to ensure sales tax compliance. He stated, “With due respect, we have given a satisfactory reply to the committee’s objection.”
Senate Concerns and Finance Minister’s Assurance
The plan to procure 1,010 vehicles, estimated to cost over Rs6 billion, has drawn sharp criticism from Senate members. During a recent meeting, Senator Saleem Mandviwalla, chair of the finance committee, questioned the necessity of such extensive acquisitions, sarcastically asking, “Were field officers previously collecting taxes on bicycles?”
Finance Minister Muhammad Aurangzeb defended the procurement, arguing that it is crucial for FBR officials to conduct fieldwork effectively. He also pledged transparency in the procurement process, ensuring that no suppliers would be excluded unfairly.
Transparency Concerns
Senator Mandviwalla raised concerns over potential mismanagement and lack of transparency in the procurement process, particularly regarding the exclusion of competitors during bidding. He emphasized that such a significant expenditure demands strict adherence to government procurement policies.
The vehicles are to be delivered in phases, starting with 75 units in January, 200 in February, 225 in March, and 510 in April and May combined.
High Tax Collection vs. Low Infrastructure Spending in Karachi
Langrial also addressed queries about Karachi’s high tax contribution versus the city’s relatively low infrastructure spending. He clarified that tax collection and spending decisions are dictated by federalism and constitutional principles, pointing out that Karachi’s tax collection reflects contributions from large national and multinational companies headquartered there.
Despite assurances from Langrial and Aurangzeb, the procurement remains a controversial topic, with critics urging further scrutiny of the plan’s scale, timing, and transparency.