ISLAMABAD: The Federal Board of Revenue (FBR) has requested additional staff and logistics to address the staggering Rs7 trillion tax gap in Pakistan, monitoring tax affairs across the country, as it currently operates with just 25 offices nationwide—far from sufficient to cover the entire nation.
The FBR also highlighted that it receives only Rs1 for every Rs200 of income, underlining the dire need for increased resources. For comparison, India allocates 1.5% of its total revenue towards tax operations, while Pakistan allocates a mere 0.44%. Additionally, the FBR has pointed out a significant disparity in salaries and benefits between provincial departments and the FBR, with provincial staff earning up Trance
The FBR’s request for additional resources comes amidst controversy over its decision to purchase 1,010 new cars, each with a 1200cc engine, for officers at a total cost of Rs3 billion. The move drew sharp criticism, with a Senate panel calling for the cancellation of the contract. Concerns were raised over the lack of competition in the bidding process, as the contract was directly awarded to Honda Atlas, despite Indus Motors offering a lower price of Rs200,000 per vehicle. Senator Mandviwalla, Chairman of the Senate Standing Committee on Finance, questioned the decision, citing the need for a more competitive process.
