FBR took an important step towards restructuring when the Federal Board of Revenue separated the administration of Sales Tax and Federal Excise Duty (FED) from Income Tax. The new administration structure announced on Friday, November 13, 2026, includes the creation of a new position called Member Sales Tax & FED (Technical) at Islamabad and shifting 54 officers of Inland Revenue from BS-17 to BS-21 into the new wing. Dr. Muhammad Sarmad Qureshi (Grade-21, Inland Revenue Service) has been appointed as head of the new wing.
Phased Rollout Timeline Under the FBR Restructuring Plan
| Implementation Date | Operational Milestone & Field Formation Rollout |
| December 1, 2026 | Dedicated sales tax units commence operations inside Large Taxpayer Units (LTUs) and Corporate Tax Offices (CTOs) under existing commissioners. |
| January 1, 2027 | Separate sales tax units become fully functional across all Regional Tax Offices (RTOs) nationwide. |
| March 1, 2027 | Independent Chief Commissioners for Sales Tax are formally appointed to head dedicated regional zones. |
What the New Sales Tax and FED Wing Means for Taxpayers
The new organizational structure approved by the Board-in-Council of FBR has an independent administration set up with monitoring officers for the Sales Tax & FED wing. However, no separate position has been notified for Member Income Tax (Technical) yet. Hence, corporate and individual income tax matters will remain with Member Inland Revenue (Operations), but the new Sales Tax zones will progressively be taking over the Indirect Taxes.
How Can Businesses Fix Past Electronic Billing Mistakes? Find out how taxpayers can cancel or amend old sales tax invoices on the main FBR IRIS website even after the 72-hour window expires.
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Can Late Filers Join the Active Taxpayers List Without Fines? See how individuals can waive the Rs. 25,000 surcharge under the FBR late filer ATL amendment by agreeing to a six-month property purchase ban.
How Can You Pay Smartphone Registration Duties in Easy Steps? Uncover the DIRBS integration rules and financial year deadlines for paying imported mobile phone taxes through monthly installments.
