FBR Splits Sales Tax Department From Income Tax

The Federal Board of Revenue (FBR) has restructured its administration by separating the sales tax and Federal Excise Duty (FED) departments from income tax. As part of this initiative, 54 Inland Revenue officers have been assigned to a newly established wing. A new post of Member, Sales Tax & FED (Technical) has been created at the FBR headquarters in Islamabad.

Dr. Muhammad Sarmad Qureshi, a Grade-21 officer, has been appointed to this new position. The restructuring will be implemented in phases, with sales tax units beginning operations in Large Taxpayer Units (LTUs) and Corporate Tax Offices (CTOs) by December 1, 2026. The separate sales tax units will become fully operational in Regional Tax Offices (RTOs) on January 1, 2027.

On March 1, 2027, Chief Commissioners specifically for Sales Tax will be appointed. The FBR's Board-in-Council has approved the new Member post, and the organization's structure has been revised in its new reporting system. However, a Member post for Income Tax has not yet been designated, meaning income tax matters for taxpayers will continue to be managed by existing officers and structures.