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ISLAMABAD, Jan 28 (APP):Minister for Law, Justice and Human Rights Azam Nazeer Tarar clarified on Tuesday that vehicles are being purchased for FBR officials to address the shortfall in sales tax revenue.
Responding to Senator Faisal Vawda’s Calling Attention Notice in the Senate, the minister provided a detailed explanation regarding the Federal Board of Revenue’s (FBR) decision to procure 1,010 vehicles for its field officers.
Minister Tarar emphasized that field visits are essential for meeting tax collection targets, which cannot be accomplished by office-based work alone. He stated that these vehicles are necessary to address a substantial 3 trillion rupee gap in sales tax recovery. He assured the Senate that the procurement was carried out within FBR’s current budget, without the need for any supplementary grants from the government.
He elaborated on the global standard for tax collection agencies, noting that they typically allocate up to 5% of their total revenue for operational costs. In comparison, FBR spends only 0.43% of the total revenue it collects, which includes not only salaries but also other essential departmental expenses related to tax collection.
Minister Tarar also addressed concerns raised by Senator Vawda regarding the choice of vehicles, explaining that Honda City (1198 cc) vehicles were selected for their effectiveness and cost-efficiency. Additionally, he assured that local manufacturers were prioritized.
He highlighted that the selected vehicles will be equipped with tracking and navigation systems, and emphasized that these vehicles will help improve field operations, including visits to manufacturing firms. The objective is to enhance tax recovery and address the existing 3 trillion rupee shortfall in sales tax. The Minister confirmed that these vehicles will be used exclusively for field operations and that officers will be directed to personally visit manufacturing sites to ensure better compliance with tax regulations.
Minister Tarar also confirmed that FBR representatives would be available to address any further concerns regarding the vehicle procurement process and provide additional briefings as needed./