The Inland Revenue wing is the most important wing of the FBR and is responsible to collect and manage domestic taxes. The three Domestic Taxes (Income Tax, Sales Tax and Federal Excise Duty), constitute about 90% of the Revenue collected by FBR. These taxes are not only similar in essence, but also are interdependent in practice. To improve the tax to GDP ratio, the Inland Revenue Wing of the FBR was created, combining the three domestic taxes.
The organizational structure of the Inland Revenue Wing at the FBR Headquarter and their job assignments are as under:
Chiefs – Inland Revenue (IR) Wing
- Chief IR (Headquarter)
- Chief (Sales Tax/Federal Excise Duty – Policy)
- Chief (Income Tax – Policy)
- Chief IR (Operations)
- Chief IR (Audit)
- Chief IR (Automation)
1. Chief IR (Headquarter)
The following sections would work under Chief IR (Headquarter):
I.R – General:
– Matters pertaining to rewards for detection of tax evasion
– Matters pertaining to PRAL
– Matters pertaining to reforms/ restructuring/ re-organization
– Any other job assign
I.R – Judicial Section:
– ADR matters – Income Tax/ Sales Tax
– FTO maters – Income tax / Sales Tax
– Legal matters, Appeals and Court Cases
– Parliament business
– Cabinet matters
– Any other job assigned
I.R – Coordination Section:
– Coordination on Income Tax and Sales Tax matters, including:-
– Taxpayers Registration for Income Tax and Sales Tax
– Board in Council
– Conferences
– Any other job assigned
I.R – Revenue Budget:
– Assignment and monitoring of collection targets of Income Tax, Sales Tax and Federal Excise Duty.
– Matters pertaining to I.Tax/ S.Tax/ FED Jurisdiction.
– Matters pertaining to Income Tax/ Sales Tax refunds.
– Authorization of banks for collection of revenue.
– Any other job assigned.
2. Chief (Sales Tax/Federal Excise Duty – Policy)
Secretary (Sales Tax and Federal Excise Duty Budget) would work under him. His assignment would include:
– All budget and policy matters relating to dutiable / taxable goods and services
– Post budget clarifications and SROs
– ST and FE law and procedure and interpretation thereof
– Issuance of SROs/General Orders/ Circulars/Clarifications etc.
– Clarifications of goods and services
– Valuation of goods and tariff values
– Any other job assigned
3. Chief (Income Tax – Policy)
The following sections would work under Chief IR (Income Tax Policy):-
Secretary (ITP):
– All Matters pertaining to income tax policy
– Clarifications on income tax policy
Secretary (WHT):
– All matters pertaining to withholding taxes
Secretary (Exemptions)/(I.T Rules):
– All matters pertaining to Income Tax exemptions/Second Schedule and Income Tax Rules
– All matters pertaining to sales tax exemption
Secretary (International Taxes):
– All matters pertaining to international taxes
– Income Tax and Sales Tax
– Coordination / liaison with BOI, IMF, WB, IFC, DFID, OECD (including training) etc.
– Matters relating to international tax agreements/treaties.
In order to rationalize the work flow, compliance, enforcement, monitoring and recovery of taxes ensuring facilitation for the taxpayers in their respective areas of responsibilities an equal number of RTOs/LTUs i.e. seven (07) offices (mentioned below) are placed under each Chief (Inland Revenue) of FBR. Each Chief (IR) would be assisted by Secretary and Second Secretary, and would have the following jurisdiction:
| Chief IR-I | Chief IR-II | Chief IR-III |
|---|---|---|
| LTU, Islamabad | LTU, Lahore | LTU, Karachi |
| RTO, Islamabad | RTO, Lahore | RTO, Karachi |
| RTO, Rawalpindi | RTO-II, Lahore | RTO-II, Karachi |
| RTO, Peshawar | RTO, Sialkot | RTO-III, Karachi |
| RTO, Abbotabad | RTO Gujranwala | RTO, Hyderabad |
| RTO, Faisalabad | RTO, Multan | RTO, Sukkur |
| RTO, Sargodha | RTO, Bahawalpur | RTO, Quetta |
- Matters pertaining to complaints of tax evasion and taxpayer’s grievance will be dealt by Chiefs, I, II and III for their respective jurisdiction.
- Matters pertaining to PAC / DAC and external audit will be dealt by Chief IR.I.
- Monitoring of daily collections, refunds and filing of returns will be monitored by Chief IR, I, II, III for their respective jurisdictions.
- Automation and e-filling will be handled by Chief IR-III.