Cars to enhance FBR tax collection: Law minister

ISLAMABAD: Federal Law Minister Azam Nazeer Tarar has announced that the procurement of new vehicles for FBR officers will boost sales tax collection and curb tax evasion. This move aims to enhance the Federal Board of Revenue’s (FBR) capabilities to monitor and enforce tax compliance, ultimately increasing revenue generation.

Addressing the Senate, the law minister on Tuesday said the cars were only meant for BPS 17-18 grade field officers. They “are needed for on-spot inspection of factories to assess actual sales tax, which was not possible while sitting in offices. The tracker-fitted vehicles with the FBR logo were being purchased after demand for field operations.” He said the FBR had analyzed that there was a gap of Rs3,000 billion in sale tax collection, which could be enhanced through better monitoring. Tarar said that the rules of the Public Procurement Regulatory Authority were being followed in this deal.

Earlier, Independent Senator Faisal Vawda, speaking on his calling attention notice, raised alarm over the decision of the Federal Board of Revenue (FBR) to procure vehicles and maintained it was questionable in many ways. He alleged that an automobile company had been awarded a tailor-made contract while bypassing all required processes. He also claimed no ad was given in newspapers. He charged that there were discrepancies in this award of contract for the procurement of vehicles and requested the law minister to stop this theft of millions of rupees. Senator Vawda explained official vehicles were only allowed for Grade 20 and above officers and not for the officers below these grades. He noted they were told that the cabinet had given formal approval to this procurement. “We contend that we should get cheap and good quality vehicles if needed. Why are you inflicting losses of millions of rupees to the national exchequer while the FBR is already giving billions of rupees incentives to its employees in the form of extra salaries and bonuses? Whether you have met your targets of tax collection,” he questioned the FBR and the answer is no,” he argued.