FBR splits sales tax and income tax departments in Islamabad
The Federal Board of Revenue in Islamabad has separated sales tax and income tax functions to address a widening revenue gap.

New technical member appointed for sales tax
Dr Muhammad Sarmad Qureshi of the Inland Revenue Service has been posted as Member Sales Tax and FED Technical. This appointment occurred late Friday night following approval by the Board in Council. Fifty four officials ranging from BS 17 to BS 21 were transferred to these new posts. The restructuring aims to create separate zones for sales tax within each chief commissioner jurisdiction.
Revenue gap drives functional separation decision
Senior tax officials told Dawn that sales tax revenue has widened to Rs 3.4 trillion due to weak enforcement. The government decided to reverse seventeen years of integration between the two collection functions. Functional separation will begin at the commissioner level while administrative structures remain unchanged for now. Large Taxpayer Offices will start this transition on December 1 followed by corporate and regional offices.
Transition expected within two months timeline
The complete restructuring process is scheduled to finish within two months of the initial announcement. Dedicated officials will be assigned exclusively to sales tax matters under technical oversight. The new member reports directly to the FBR chairman while chief commissioners retain operational control. Both taxes will continue administration within the IRS rather than through separate services.
All 2 outlets report consistently
No differences in figures, names or dates across these reports.
- Business Recorder
- Dawn
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2 independent outlets. Headlines as published. Links open the original report.