Govt Unhappy With FBR Spending Rs. 2.2 Billion to Buy 179 Cars

The Planning Commission has raised objections to the Federal Board of Revenue’s (FBR) proposal to spend Rs. 2.237 billion on 179 vehicles, including 15 fully bulletproof units, under its Rs. 41 billion Revenue Raises Project. The vehicle purchase, estimated at Rs. 12.5 million per unit, lacks technical specifications, the Commission noted. The project is funded by a $150 million World Bank loan at 2.5 percent annual interest over 30 years. Despite high projected returns, the Planning Commission flagged weak scrutiny, particularly over FBR’s vehicle procurement. FBR defended the purchase, stating the vehicles are essential for operations across difficult terrains where 37 digital enforcement stations will be deployed. It said the vehicles include no luxury features and meet only the minimum operational needs for anti-smuggling work. The procurement also includes 350 bulletproof jackets and helmets. The project, scheduled to be completed by June 2027, focuses on ICT upgrades, including data centre replacement, cloud systems, software, LAN, and VoIP connectivity. FBR estimates these upgrades will save $100 million. The reform aims to reduce customs clearance time from 97.5 hours to 48.5 hours, increase the tax-to-GDP ratio to 17 percent (currently near 10 percent), and address widespread undocumented economic activity, which the Commission says accounts for 64 percent of GDP. The Planning Commission also noted that tax compliance costs for small businesses average Rs. 250,000. It urged simplification of tax procedures, reduction of levies, and faster digitisation. Of the 37 enforcement stations, 24 will be located along the Indus and Hub rivers, supported by three mobile units. Ten more will be established at key points in Balochistan. These stations will operate with control rooms, backup power, and tracking systems integrated with national databases to detect tax evasion.