INTRODUCTION TO FBR

The Federal Board of Revenue (more commonly known by its initials as FBR) is a semi-
autonomous federal agency of Pakistan that is responsible for enforcing fiscal laws and
collecting revenue for the government of Pakistan. FBR has the responsibility for
(i) formulation and administration of fiscal policies
(ii) levy and collection of federal duties, taxes and other levies
(iii) quasi-judicial function of deciding Customs & taxation cases and appeal.
FBR is perhaps the largest federal department in Pakistan. FBR primarily operates through
its main collection arms comprising Customs collectorates, Regional Tax Offices (RTOs) and
Large Taxpayer Units (LTUs) across the country.
FBR has two major Departments

(i) the Inland Revenue & Customs.

The Inland Revenue Service (formerly known as Income Tax Department)
administers domestic taxation including Sales Tax, Income Tax and Federal Excise
Duties.
(ii) The Pakistan Customs Service
It administers import duties and other taxes collected at import stage, as well
regulates international trade with regard to prohibitions & restrictions imposed
by the government. For the purpose of collection of revenue and pursuing tax
evaders, FBR's powers & functions also include but are not limited to: carrying
out inquiries and audits/investigations into the tax affairs, commanding arrests,
attachment as well as public auction of movable and immovable assets of a non-
compliant.

Dr Muhammad Irshad is the current chairman of FBR.

History of FBR
The Focal Leading group of Income known as Central Board of Revenue (CBR) was made on
April 01, 1924 through establishment of the Central Board of Revenue Act, 1924. In 1944, an
undeniable Revenue Division was made under the Ministry of Finance. After independence,
this game plan proceeded up to 31st August 1960 when on the proposals of the
Administrative Re-organization Committee, FBR was made a joined division of the Ministry
of Finance. In 1974, additionally changes were made to streamline the association and its
functions. Subsequently, the post of Chairman FBR was made with the status of ex-officio
Extra Secretary and Secretary Fund was alleviated of his obligations as ex-officio
Administrator of the FBR.
With a specific end goal to expel hindrances in the activity of regulatory forces of a
Secretary to the Government and effective formulation and implementation of fiscal policy
measures, the status of FBR as a Revenue Division was restored under the Ministry of
Finance on October 22, 1991. and usage Be that as it may, the Revenue Division was
cancelled in January 1995, and FBR returned to the pre-1991 position. The Revenue Division
keeps on existing since from December 01, 1998.
By the authorization of FBR Act 2007 in July 2007 the Central Board of Revenue has now
turned out to be Federal Board of Revenue.
Vision
To be a modern, progressive, effective, autonomous and credible organization for
optimizing revenue by providing quality service and promoting compliance with tax and
related laws

Mission
Enhance the capability of the tax system to collect due taxes through application of modern
techniques, providing taxpayer assistance and by creating a motivated, satisfied, dedicated
and professional.

Values of FBR
Integrity
Professionalism
Teamwork
Courtesy
Fairness
Transparency
Responsiveness
Main Offices of FBR

Head Office

Islamabad

Regional Offices

Islamabad
Sukkur
Multan
Gujranwala
Peshawar
Rawalpindi
Quetta
Sialkot
Karachi
Lahore
Faisalabad
Sargodha
Abbottabad

Branch Office

Lahore
Karachi
Islamabad
Organizational Structure
Services of FBR

In the existing setup, the Chairman, FBR, being the executive head of the Board as well as
Secretary of the Revenue Division has the responsibility for

(i) Formulation and administration of fiscal policies,

(ii) Levy and collection of federal taxes and

(iii) Quasi-judicial function of hearing of appeals.

His responsibilities also involve interaction with the offices of the President, the Prime
Minister, all economic Ministries as well as trade and industry.
Departments Of FBR

I. Customs
II. Inland Revenue
III. Admin
IV. Taxpayers Audit
V. Legal
VI. Fate
VII. SPR&S
VIII. HRM
IX. Information Technology
X. Accounting
XI. RA&R
Custom Department

Mr.Muhammad Zahid is is senior member Customs

Description

Pakistan Customs is the guardian of Pakistan borders against movement of contra band
goods and is facilitator of bona fide trade . It provides a major source of revenue to the
Government of Pakistan in the form of taxes levied on the goods traded across the borders.
It also helps to protect the domestic industry, discourage consumptions of luxury goods and
stimulate development in the under -developed areas.

Duties
Shipping Bill
Egm Recording
Exporters Profile
Registration
Processing
Let Export

Duty Drawback
Registration
Automatic S/Bill Data Correlation
Appraisement
Sanctioning

- Normal
- Gold

- 70 % Within 24 Hrs
Cheque Printing / Bank Advice
Automatic Recovery & Cheque Issuance To Collectorate
Blocking / De-Blocking

Functions
Deal with all policy matters, rules, regulations, interpretation of relevant laws and
perform all allied functions, relating to Customs, including:
o Exemptions
o Duty Drawbacks
o Rebates
o Changes/modifications in Pakistan Customs Tariff
o Judicial/Legal Issues
Formulate and present proposals relating to Customs for annual Finance Bill;
Liaise with international organizations/ agencies on matters relating to Customs;
Achieve revenue targets and manage operations relating to Customs;
 Process, short list and nominate officers of Customs for Customs specific foreign
training;
Supervise all inter-ministerial issues relating to Customs;
Exercise powers and perform functions of the Board under the provisions of Customs
Act 1969, Customs Rules 2001 and Customs Notifications as delegated by the Board.
Inland Revenue Department

Dr.Muhammad Iqbal is senior member of Inland Revenue(policy)

Mr. Rehmatullah Khan Wazir is member of Inland Revenue (operations)

Description

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 Pakistans 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
Department of the FBR was created, combining the three domestic taxes.

i- Income Tax

Taxation according to a persons ability to pay is universally accepted principle, and

income is considered a satisfactory though not a sufficient index of such ability to pay.
Income Tax is, therefore, generally recognized as a highly equitable form of taxation. A tax
levied on income can normally be shifted to others and thus its incidence is on those for
whom it is intended. Since income tax is progressive in nature, it tends to reduce economic
disparity. Tax rates and method of calculating taxable income varies with fiscal status of
the tax payer. Following are the broad categories of taxpayers:-

Companies
Association of Persons (AOP)
Non Salaried Individuals
Salaried individuals

ii- Capital Value Tax

It is payable by individuals, firms and companies which acquire an asset by purchase or a
right to use for more than 20 years

iii- Cooperate Asset Tax

It is levied through section 12 of the Finance Act, 1991. This is one time levy payable by a
company as defined in Companies Ordinance, 1984, on the value of fixed assets held by the
company on the "specified date".
Functions

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

Ms. Rukhsana Yasmin is member of Tax Payer Audit

Description
Tax System in Pakistan is working on self appraisal premise gone for advancing intentional
consistence, documentation and self-policing. Tax Audit is a powerful instrument of control
with the FBR through which consistence level is checked. Through Audit, the administration
checks whether a registered person/ taxpayer has effectively decided his tax liability,
deposited due tax in the national exchequer and is making adjustments and so on, to which
he is lawfully entitled. With a specific end goal to protect the administration's advantages,
FBR has built up a focal hazard based and mechanized Tax Audit Management System
(TAMS), which is constantly reviewed and improved.
With a specific end goal to accomplish the previously mentioned objectives, Taxpayer Audit
Department was set up in January 2003. It was relegated the errand of rebuilding and
transforming the review strategy. The fundamental assignments included drafting National
Audit Manual, planning National Audit Plan and preparing the FBR workforce in present day
inspecting methods and so forth.

Functions

Planning and designing audit techniques.

Evaluating tax audits for all dosmestic taxes.

Devise and actualize a National Audit Plan.

Design selection criteria for coverage of all higher risk regions.

Develop audit technique to guarantee audit quality.

Audit and Checking of Unlawful Sales Tax input adjustment.

Monitoring Post Refund Audit of Wage Duty, Deals Assessment and Encouraged.

Desk Review and resultant legal activities.

Any different obligations appointed by Director FBR

Audit Process Should Be Effective, Fair And Conducted With Integrity

FBR is taking awesome care to guarantee that Audit are led in gracious, proficient, proficient
and powerful way and in addition with most noteworthy principles of trustworthiness.

Selection Criteria

Taxpayers are selected for audit on the basis of transparent, discretion free and automated
process. The selection is done by computer, using different information items and
parameters, without resorting to any identity details of the taxpayers

Ensuring Integrity And Quality

An overall Integrity Program has been implemented within the organization. Auditors and
Managers are expected to meet the highest ethical standards. Disciplinary actions will be
initiated against those who choose to conduct themselves in an unethical manner. A quality
review process has been established to ensure that prescribed standards and procedures
are followed and there is uniformity in application of laws and procedures

Tax Payers Feedback

Periodic feedback from Field Formations and Tax Bars Associations is

obtained to:
1. Gauge perception of the Audit Process.
2. Improve the overall audit process.
3. Evaluate the behaviour, professionalism and competence of Audit
staff
Facilitation & Taxpayer Education (FATE) DEPARTMENT

Dr. Fazal Muhammad Abrejo is member of FATE.

Description
The FATE is abbreviation of Facilitation & Taxpayer Education.
The FATE Department of FBR is one of the support Departments created as a result of tax
administrative reform process also known as (TARP). In the wake of universal self
assessment and introduction of new audit based Income Tax Ordinance and Sales Tax Law
as well as speedy Customs clearance screened through automated risks parameters, the
importance of tax payers facilitation and education has also emerged as a hallmark of newly
reformed FBR.

Functions
To ensure flow of information to the stake holders that is timely, relevant and of
high quality. Liaison with the electronic and print media of the country for all the
updates, news and events.
To receive the information and queries from the taxpayers regarding procedural and
technical difficulties being faced by them in meeting the tax obligations and to
respond by rendering them advice in removing such difficulties.
To promote cultural change in FBR as tax officials must adopt a more assisting and
facilitating attitude towards taxpayers rather than traditional confrontational mode.
Preparation and publishing brochures, guides, and material related to all taxes for
the facilitation general public at large, the taxpayers and the tax authorities.
To simplify tax return forms and other forms for the facilitation of tax payers.
To maintain a user friendly website providing maximum information to the stake
holder regarding tax laws, procedures, and facilitation brochures and forms.
Arranging and organizing tax awareness seminars, employee workshops and
question answer sessions.
To assist administration Department in establishing about 65 Tax Facilitation Centers
(TFCs) all over the country.
Establishing information spots, mobile information units for facilitation of the
taxpayers.
Liaison with the tax payers representatives such as chamber of commerce, trade
bodies through awareness seminars, workshops etc.
Responding to the queries of tax payers and general public related to all the taxes through
the helpline desk via telephone, e-mail, fax and letters.

Representation to the Chairman FBR:

A Grievance Cell under Section: (7) the FBR Act to be established at the FATE
Department as per decision of the FBRs board in council to receive and process
applications regarding the grievances of any person aggrieved by any action done or
taken for the enforcement of the fiscal laws or any notification issued by the Federal
Government or due to any act of maladministration, corruption and misbehavior by
any officer or employee of the Board or any unnecessary delay or hardship caused
 due to any administrative process. And submit a final report to the Chairman FBR for
decision.
Tax Awareness seminars:
Seminars will be organized in all major urban stations in collaboration with local
representatives of trade and industry. FBR leadership will explain the changes
introduced and the future course of action to be followed by Q&A session. Members
of professional bodies and other segment of intelligentsia will be invited.
Employee workshops:
will be organized in all major cities where FBR leadership along with field managers
will hold interactive sessions with the employees to get latest feed back about their
feelings and response to the reform process.
Website:
FBR website will be revamped and updated to provide latest information to the
stake holders. Pakistanis living abroad must be able to access latest changes in Tax
laws, foreign investors can be diverted through a user friendly website

Future Action Plan of FATE Department

National Essay writing competitions shall be arranged on the national tax issues in
collaboration with the Ministry of Education and the Higher education Commission.
Capacity Building Courses: for tax officers frequently in public contact will be
arranged to acquaint them with best practices in public dealing of being polite,
courteous and helpful to the tax payers.
Call Center/ Complaint Handling System: Help line is currently serving the tax payers
by responding to their queries through phone, e-mail, fax and courier. An automated
complaint handling system / call center is being planned to be set up in near future.
Brochures and Leaflets: FBR has traditionally been weak in this vital area; however
reform efforts must introduce the culture of facilitation of tax payers
Strategic Planning, Reform & Statiistics (SP&S) DEPARTMENT

Mr.Nasir Masroor Ahmad is member of Strategic Planning, Reform & Statiistics

Description

Strategic Planning, Reform & Statistics (SP&S) Department is one of the support
Departments created as a result of tax reforms. In March-April 2002, the Government
appointed Professional Members from Private sectors for HRM, IMS, Audit, Taxpayers
Education and Facilitation and Fiscal Research and Statistics. Creation of this Department
was a progress of reform initiative. List of Members since its creation is as follows:
1. Dr. Athar Maqsood Ahmad
2. Mr. Ihsanul Haq
3. Mr. Afzal Bhatti
4. Mr. Mumtaz Haider Rizvi
5. Mr. Zafarul Majeed
6. Mr. Ibrar Ahmad Khan
7. Mr. Mehmood Alam
8. Mrs. Azra Mujtaba

Functions
Achieve revenue targets and manage operations relating to Inland Revenue;
Supervise revenue collection by Chief Commissioners of all RTOs / LTUs who shall
report to him;
Monitor enforcement and Withholding Tax activities relating to Inland Revenue;
Law & Procedure except matters falling in the purview of Member (IR-Policy);
Liaise with the Member Customs for WHT on imports;
Exercise powers and perform functions of the Board under the provisions of Sales
Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules
2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the Board.
Research, Analysis & Reforms (RA&R) Department

Tax Policy Analysis Unit

1-Research and analysis of Macroeconomic indicators and their trends vis--vis

implications for revenue collection.
2. Analysis of data relating to collection of Duty and Tax (Direct Taxes, indirect Taxes
& Customs) and generation of fiscal updates on revenue collection.
3. Analysis of tax expenditure and compliance cost.
4. Conduct research for suggesting new taxation measures along with impact
analysis and revenue forecasting.
5. Perform any other duty or task assigned by the chairman, FBR.

Market Monitoring & Intervention Unit

1. Analysis of economic trends in different sectors, forecasting its impact on revenue

collection and identification of sectors and subsectors where revenue growth is
below potential along with proposed remedies.
2. Undertake forensic audit of units and sectors on the directions of Board-in-Council.
Analysis of average tax collection and actionable recommendations.
Monthly Reports on revenue collection; highlighting anomalies and trends.
Impact assessment of new tax measures and generation of evaluation reports on
revenue responsiveness of each such measure.
Conduct studies, as suggested by other Departments, particularly sectoral &
industry analysis on tax contributions.
The Member (RA&R) shall also act as Project Director of the PMU for the Revenue
Mobilization Project.
Functions

Preparation of Annual Integrated Enforcement Action Plan

Analysis of data obtained from field formations regarding enforcement activities,
including data of withholding taxes, arrears, etc.
Quarterly presentation of findings and recommendations based on aforementioned
analysis before BIC
Liaison with Member (IR-Operations) regarding collection of withholding taxes Plan
& Design procedures regarding
Taxpayer Registration including control of non-registration
Tax Declarations including control of non-filing
Tax payments
Collection of tax arrears
Collection of with-holding taxes
Perform any other duty or task assigned by the Chairman, FBR
Legal Department

Hafiz Muhammad Ali Indhar is member of Legal Department

Description

Legal Department of the FBR helps in implementation of the tax laws. The objective of
growth in revenue is achieved in coordination with other Departments of FBR. Legal
Department of FBR is in incessant efforts to ensure proper representation of Revenue
before various legal forums

Functions
Grant of approval for filing of appeals/references before High Courts and CPLAs/Review

before the Supreme Court and to pursue litigation in courts.

Assigning court cases, issuing Power of Attorney and monitoring performance of Legal

Advisors and Advocates on panel.

Making recommendations for appointment of Legal Advisors and placement of advocates on

panel of FBR.

Coordination with field offices to ensure filing of para-wise comments and proper

representation in each case sub-judice before the courts.

Coordination with field offices in respect of matters relating to the appointment of

Advocates, ASCs and AORs in court cases and fee matters of such advocates.

Maintaining and updating the list of pending cases before the Supreme Court and High

Courts on the official website of FBR.

Coordination with field offices and FTO office to ensure submission of reports to FTO,

implementation of FTO recommendations, filing of representation before the President and

review before the FTO.

Coordination with Law Division and Attorney General of Pakistan.

 Coordination in respect of matters relating to the National Assembly and Senate Standing

Committees on Revenue and Finance.

Coordination in respect of matters relating to Inter Provincial Coordination Committee.

Condonation of time limitations on requests made by the CsIR (A) and Collectors (A).

Monitoring of work of CsIR (A) and Collectors (A) and rationalization of work load of appeals.

Any other assignment given by the Chairman.

Administration Department

Mr. Muhammad Majid Qureshi is member of Administration Department

Functions

Manage administration of Federal Board of Revenue;

Recruitment of officers/officials of FBR;

Transfer/posting of officers (BS-17 and above) of Inland Revenue and Customs in

consultation with the concerned Line Members and with the approval of the Chairman

Transfer/Posting of Commissioners (Appeal) and Collectors (Appeal) in consultation with

Member (Legal).

Short list and nominate officers of FBR for mandatory training such as MCMC, SMC, NMC

and NDU;

Deal with promotion/ disciplinary/ litigation cases of FBR employees;

Manage record of FBR employees and HRIS;

Manage sanctioned strength of FBR employees;

Development budget and its expenditure under PSDP;

Manage current budget of FBR;

Administer expenditure budget of field formations;

Process all matters relating to official / gratis passports and Exit Control List (ECL);

Coordinate in matters relating to the National Assembly, Senate Standing Committees on

Revenue and Finance, Cabinet Decisions and other Ministries / Divisions;

Manage logistics, vehicles, library, buildings, internal/external security and procurements

pertaining to their repairs/maintenance at FBR (HQ);

 Process all matters relating to purchase/condemnation of vehicles at FBR (HQ) and field

offices;

Process hiring, de-hiring and rent payment of office buildings at FBR (HQ) and field offices;

Process hiring, de-hiring and rent payment of residential accommodations for employees at

FBR (HQ);

Process re-imbursement of medical claims of employees at FBR (HQ) and field offices;

Manage all administrative and coordination arrangements for Annual Revenue Budget;

Perform/initiate welfare activities for FBR employees;

Exercise powers and perform functions of the Board under the provisions of Customs Act

1969, Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005, as

delegated by the Board.

Perform any other duty or task assigned by the Chairman, FBR.

Human Resourse Management (HRM) Department

Mr. Rozi Khan Burki is member of HRM Department

Functions
Process, short list and nominate officers for local and foreign training, other than
mandatory training and IRS specific and Customs specific training.
Deal with all matters relating to Policies & Procedures for Performance-linked Bonus
Schemes, Voluntary Severance Scheme, Job Descriptions and Organizational
Structure, work force planning.
Conduct awareness campaigns regarding changes and issues relating to human
resource.
Information Technology (IT) Department

Ms. Nausheen Javaid Amjad is member of IT department

Functions

Prepare plan and strategy for FBR in the field of Information & Communication
Technology (ICT).
Provide support and assistance to the Senior Management in taking informed
decision in the field of ICT;
Forecast and budget procurement of Software / Hardware / Networks, in
coordination with PRAL;
Manage all ICT projects, including contract and Vendor Management, preparation of
Bidding Documents / RFPs / Bid Evaluation Reports, Consultants TORs, etc, for
award of contracts for procurement of Software/ Hardware, Networks, in
coordination with PRAL;
Monitor and control software development and implementation by PRAL / external
vendors and grant mandatory prior approval for initiating new or modifying /
enhancing/ shelving existing software application;
Undertake periodic System Audits for Quality Assurance, especially security of the
Operational Software, under development or developed and deployed, and resource
Management for such System Audits;
Constitute user groups for various ICT activities;
Liaise with other Departments of FBR for Business Need Analysis;
Coordinate with Directorates General (T&R) for ICT Training of end-users;
Oversee cleansing of existing data;
Supervise PRALs overall management, including administrative, financial and
technical activities;
Monitor and evaluate overall performance of CEO,PRAL;
Serve as an essential interchange for all communications between PRAL and
FBR(HQ)/ its field offices;
Spearhead the process of developing the audit methodology to assure audit quality;
 Deal with all legal, administrative and financial matters relating PRAL, including
agreement/ contract and verification of invoices raised by PRAL;
Deal with all matters relating to SAP, including renewal of Licenses, Training and
implementation, etc. in FBR and field offices;
Exercise powers and perform functions of the Board under the provisions of Sales
Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules
2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the
Board:.
Accounting Department

Mr. Faheemul Haq Khan is member Accounting Department

Functions

Deal with all matters relating to PAC/DAC on Audit Reports/Performance Audit

reports/Special Studies Reports.
Deal with all matters relating to PAC/DAC on Appropriation Accounts (Grants with
AGPR).
Deal with all matters relating to DAC on management/MFDAC (Memorandum for
Departmental Accounts Committee) reports and Financial Attest of Financial
Statements (Revenue Components) for each financial year.
Coordinate with Auditor General of Pakistan and Public Accounts Committee in
matters relating to Audit and Vice Versa.