FBR separates sales tax and income tax departments in major restructuring

The Federal Board of Revenue has reorganised its Inland Revenue administration, separating sales tax and federal excise duties from income tax and reassigning 54 senior officers. Profit by Pakistan Today reported that the changes were announced late Friday, with distinct sales tax and income tax commissioners expected to take up their roles from January 2027. Businesses could consequently need to contact different tax offices for income tax, sales tax and Customs matters.

As part of the revised setup, the FBR named BS-21 officer Dr Muhammad Sarmad Qureshi to a newly created technical post covering sales tax and federal excise duties at its Islamabad headquarters. The Board-in-Council approved the position, but no matching technical post for income tax had been announced, while income tax is expected to remain under the Member Inland Revenue (Operations). Tax professionals have raised questions about how chief commissioners will report and how responsibilities will be divided between the new sales tax role and the existing operations member.