Vehicles purchase must for young officers' tasks, says FBR chief amid controversy

• FBR will achieve tax targets set for it, says FBR chief. 
• He says large companies contribute in Karachi's tax collection.
• Financial affair decided in federalism, constitution, says Langrial.

KARACHI: Days after the Senate Standing Committee on Finance and Revenue instructed to call off the intended procurement, Federal Board of Revenue (FBR) Chairman Rashid Langrial on Sunday said purchasing vehicles for young officers was necessary for the department’s operations.

"With due respect, we have given satisfactory reply to the committee’s objection," FBR chief Langrial said, adding that an officer’s visit for checking sales tax was indispensable.

To a query, he said he was "no fortuneteller", but assured that the FBR would achieve the tax targets.

The Senate’s finance body, chaired by Senator Saleem Mandviwalla, had on January 22 directed the FBR to halt its plan to procure 1,010 vehicles, a move estimated to cost over Rs6 billion to the national exchequer.

The revenue committee's decision sparked an outrage among committee members, who called the purchase "shady" and "a way to corruption".

The issue was raised during the committee's meeting which discussed the FBR's decision to purchase vehicles for its field officers.

The committee chair had questioned the rationale behind such an extensive acquisition. “Why is the FBR purchasing over a thousand vehicles? Were field officers previously collecting taxes on bicycles?” asked Mandviwalla.

Nevertheless, Finance Minister Muhammad Aurangzeb on Friday assured the Senate body that "transparency" would be ensured in the procurement of 1,010 vehicles for the FBR.

"Procuring vehicles for the FBR officials is an important requirement... They cannot just sit in offices and continue their work," the minister had said.

In his letter, Senator Mandviwalla had highlighted apprehensions regarding the procurement process, emphasising that the timing and scale of such an acquisition raised "considerable doubts about the transparency and integrity of the process" which needed further review.

The delivery schedule for the vehicles is planned in phases, beginning with 75 units in January, followed by 200 in February, and 225 in March. The second phase will include 250 vehicles in April and the final 260 in May.

Mandviwalla had stated in the letter that committee members, during a recent meeting, pointed to the deliberate exclusion of competitors in the bidding process, raising suspicions of mismanagement and mala fide intent.

The procurement, estimated to be significant in scope and expense, has been criticised for compromising the principles of transparency and fairness — fundamental tenets of government procurement policies.

Responding to the reservations, the finance minister had said that the FBR officials would have to go to the field to improve tax collection.

Aurangzeb had noted that all companies supplying vehicles were based in Pakistan, assuring that no company would be mistreated in the procurement process.

Meanwhile, in his statement today, Langrial elucidated the phenomenon of highest tax collection from Karachi, saying since large national and multinational companies had headquartered in the port city, so the tax collection data recorded their contribution as well.

He stated this in response to a query about high tax collection from Karachi but low expenditure on its infrastructure.

“This financial affair is decided in the federalism and constitution,” he added.