Inland Revenue (IR)

Domestic Taxes, comprising 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. The time tested international tenor vindicates the same. The assimilation of these taxes into a single administrative structure was imminent since long, but never in the history of the Pakistan’s Economy, was the need so great for the materialization of this change. Spurred by these exigencies and with a view to apply the modern taxation techniques to improve the tax to G.D.P ratio, the Inland Revenue Wing of the FBR was created, combining the three domestic taxes.

It is expected that the inception of this wing would facilitate the taxpayers, as it would provide them to carry through their tax matters in one organizational structure. The creation of this wing would also be conducive for the tax administration, as the access to the taxpayer’s data in respect of different domestic taxes would be easily available.

The organizational structure of the Inland Revenue Wing at the FBR Headquarter and their job assignments are as under:

CHIEF IR (HQS)

The following sections would work under Chief IR (HQs):

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 - 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 - 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 FED.
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.

IR POLICY

CHIEF (ST/FED - POLICY)

Secretary (ST & FED 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

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 Inland Revenue-I	Chief Inland Revenue-II	Chief Inland Revenue-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.