The Planning Commission has raised concerns over the allocation of Rs2.237 billion for purchasing 179 vehicles as part of the Federal Board of Revenue’s (FBR) Rs41 billion Revenue Raises Project, which is backed by a $150 million World Bank loan aimed at increasing Pakistan’s tax-to-GDP ratio.
The vehicles, including 15 bulletproof units, are intended to support the project’s goal of boosting tax collection and compliance through improved digital enforcement. However, the Commission flagged the lack of detailed vehicle specifications and urged a review of expenses, especially given the Finance Division’s ongoing austerity measures.
Defending the procurement, the FBR stressed that the vehicles are essential for operational purposes, particularly in remote areas where digital enforcement stations will be established. The authority also assured that the vehicles would be functional rather than luxurious, tailored to meet requirements for anti-smuggling activities.
The project seeks to address Pakistan’s tax shortfall by investing in ICT infrastructure, promising an estimated $100 million in nominal savings and avoiding a potential $200 million cost to rebuild failing ICT systems.
The Planning Commission further highlighted broader tax challenges, including an under-regulated system and widespread undocumented economic activity. It called for simplifying tax procedures, reducing levies, and enhancing digitization to improve compliance.
FBR’s reforms include setting up 37 digital enforcement stations, launching a Customs Tracking System, and offering mobile tax facilitation services, with an expected revenue increase of Rs81 billion by fiscal year 2028-29.
Despite the concerns, the project remains a key effort to expand the tax base by using technology to detect defaulters and improve transparency and efficiency in tax collection.