The Federal Board of Revenue (FBR) has separated the administration of sales tax and Federal Excise Duty (FED) from income tax, transferring 54 Inland Revenue officers to a newly established wing under its restructuring plan.

The FBR has created a new position of Member Sales Tax and FED (Technical) at its headquarters in Islamabad. An official notification issued on Friday confirmed the transfer and posting of 54 officers from BS-17 to BS-21 to the new setup.

Dr. Muhammad Sarmad Qureshi, a BS-21 officer of the Inland Revenue Service, has been appointed Member Sales Tax and FED.

Separate Sales Tax Offices to Start Working From December

The FBR plans to introduce the new structure in phases, with separate sales tax units becoming operational across its field formations.

The first phase will begin on December 1, 2026, when separate sales tax units start working in Large Taxpayer Units (LTUs) and Corporate Tax Offices (CTOs), initially under their respective commissioners.

From January 1, 2027, the separate units will also become operational in Regional Tax Offices (RTOs). The FBR plans to appoint dedicated Chief Commissioners for Sales Tax from March 1, 2027.

The restructuring is intended to establish a dedicated administrative system for sales tax and FED, separate from income tax operations.

The FBR’s Board-in-Council has approved the new Member-level position and revised the organisation’s reporting structure. However, the board has not yet created or notified a separate Member Income Tax (Technical) position.

As a result, income tax matters will continue to be managed by the Member Inland Revenue (Operations) and the existing income tax administration, while sales tax operations gradually move to the new structure.