Senate panel questions ‘effectiveness’ of training programmes for FBR officers

The Senate Standing Committee on Finance and Revenue on Thursday questioned effectiveness of the training programmes organised for officers of the Federal Board of Revenue (FBR) in the last 20 years, an official statement revealed.

The development comes as the FBR reported a revenue shortfall of Rs384 billion in the first half of the financial year 2025.

The committee, led by Senator Saleem Mandviwala, sought detailed information on the outcomes of the training programmes for the FBR officers.

“A significant portion of the meeting centered around the ongoing training programmes for FBR officers, which have been in place for over 20 years,” the statement from the Senate Secretariat read.

“What has been achieved from the training provided to FBR officers?” Mandviwala asked during the meeting that was also attended by Secretary Finance Imdadullah Bosal, who assured that comprehensive details would be provided to the committee.

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During the meeting, the committee was briefed on Pakistan’s current revenue shortfall of Rs384 billion for the first half of the fiscal year.

The FBR collected Rs5,624 billion in taxes, falling short of the targeted Rs6,008 billion.

Pakistan’s tax-to-GDP ratio has risen to 10.8% in the second quarter, up from 9.5% in the first quarter, “although it remains below the IMF-agreed target of 13.6% by the end of the programme”, it was told.

By comparison, India’s tax-to-GDP ratio stands at 18%, the meeting was informed.

Senator Mandviwala expressed concerns over FBR’s handling of sales tax collection.

“Many times, we have asked the FBR to collect sales tax on goods, but the people of FBR opposed it.”

Also present in the meeting, Finance Minister Muhammad Aurangzeb responded by highlighting ongoing reforms, including a move to “simplify income tax forms for salaried individuals and a push for transparency in tax collection through technological innovations like the faceless system in Customs”.

He also discussed the government’s intention to separate tax policy from the FBR operations in the next financial year, aiming to ease the burden on the salaried class.

“We are taking steps to keep the tax form simple and easy,” he added, noting that 60-70% of employees are not subject to the super tax, according to the statement.

FBR’s purchase of 1,010 vehicles

Meanwhile, Senator Faisal Vawda raised alarms over the procurement process for the purhcase of 1,010 vehicles by the FBR.

He alleged “the company to which the order was given was raided”.

He further claimed that FBR officers had threatened his life, identifying individuals involved in the threats.

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In response to the allegations, FBR chairman Rashid Mahmood Langrial and Muhammad Aurangzeb pledged that a high-level investigation would be conducted.

“Strict action will be taken against those involved in it,” he said, emphasizing that the committee should send the matter to the FIA for further investigation.

FBR chairman announced that the procurement process for the vehicles would be halted until a full review of the process was completed.

Senator Mandviwala stressed the importance of transparency in the procurement process and called for the Public Procurement Regulatory Authority (PEPRA) Board to review the vehicle purchases in line with procurement rules.

“Procurement cannot be done without PEPRA rules,” he stated.

Carbon tax

The committee also discussed the possibility of converting certain taxes into a carbon tax, a proposal raised by Senator Sherry Rahman.

While the finance minister acknowledged the World Bank’s Country Partnership Framework, which includes climate and carbon concerns, some members, including Senator Farooq H. Naik, raised concerns about the impact of a carbon tax on inflation and its effect on the poor, as per the statement.

The committee also stressed the need for reforms to reduce the administrative burden on taxpayers, while ensuring that tax collection remains efficient and fair.