FBR ordered to halt purchase of over 1,000 new cars

ISLAMABAD: A parliamentary panel on Wednesday grilled Federal Board of Revenue (FBR) officials over the purchase of 1,010 new Honda City cars worth PKR 6 billion.

The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala, questioned the necessity of acquiring more than 1,000 vehicles.

Chief Admin FBR Fareedon Din Sheikh explained that the purchase was approved under the Prime Minister's transformation plan and intended for grade 17 and 18 officers in field formations.

Senator Faisal Vawda criticized the purchase as a potential "big scandal" that could lead to corruption. He noted that while the cabinet approved vehicles up to 1300CC, the FBR ordered 1328CC vehicles from Honda.

Vawda revealed that the proposal and purchase order were both issued on January 10, bypassing required rules and potentially causing significant financial losses.

Chief Admin FBR defended the decision, stating that the purchase was made through a direct contract as allowed by PPRA rules. The vehicles will be sourced from Honda and Toyota.

The parliamentary panel directed the FBR to halt the purchase order immediately.

Speaking to the media, Senator Vawda highlighted a PKR 384 billion shortfall in tax revenue over six months and questioned the appropriateness of the vehicle purchase amid such a deficit.