As part of the Tax Administration Reforms a new occupational group, the Inland Revenue Service, has been created by the Government of Pakistan. This service group is responsible for carrying out the functions relating to Income Tax, Sales Tax and Federal Excise.

On 15.11.2010, formal notification for the creation of IRS Occupational Group (Inland Revenue Service) was issued. With this notification, the former Customs & Excise Group was re-classified as Pakistan Customs Service and the defunct income tax group has ceased to exist.

Each officer of the existing Customs and Excise Group and the Income Tax Group is called upon to exercise option for inclusion into the new Inland Revenue Service. In case no option is given it would be deemed that the officer desires to remain in his/her original group.

About Inland Revenue Wing

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.

2. 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.

3. 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 assigned

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.

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 exemptions

• 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

3. 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:-
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

Inland Revenue Service , Government Of Pakistan

Chiefs - IR Wing

1. Chief IR (HQs) Mr. Majid Qureshi 2. Chief (ST/FED - Policy) Mr. Abdul Satar Aora 3. Chief (Income Tax - Policy) Mr. Aftab Ahmad 4. Chief IR-I Mr. Muhammad Akram Tahir 5. Chief IR-II Mr. Ashraf Ahmad Ali 6. Chief IR-III Mr. Shafique Muhammad . IR Wing - Further Links

Income Tax Sales Tax Federal Excise

Mr. Hafeez Sheikh says in one of TV program that corruption each year in FBR is equal to the fiscal deficit of Pakistan. Extreme of corruption in IRS and Customs!!! What are the ways of tackling this high corruption in above two groups?

My answer is that corruption will go up even higher in those groups because their powers have become huge in IRS

can u please tell us about the merits and demerits of IRS group.

No demerits rather billions of merits in IRS. The main focus of future budgets in Pakistan will be on revenues collected through direct taxation (60% of all revenue collection in future) rather than indirect taxes. More than two million people are add in tax net and large number will be in next budget. With the additional responsibility of collecting excise duties and collecting direct taxes in huge limits the role of IRS will be very big in near future.

Please share your view point about above statement

thanks a lot for your response. i totally agree with you. No doubt that future is of financial services as IRS. one thing else, can you please tell me that what is trend of IRS as top preference among the CSS aspirants.

Right now its something like 3rd to 5th in terms of aspirants' preferences.

many people think that IRS is right now the most sought after service. But its not the case. it was notified in 2009 and it will take some time to make it so. because it will be evolutionary and not revolutionary

things r being incorporated to make it an attractive service group

something like 10-15 yrs back it were only grade 21 Regional Commissioners who used to have govt vehicles , and nothing like that for the commissioners or additional commissioners of BS 20 and 19....

but now at many RTOs even newly posted ACs are getting Govt vehicles, and in many cases accommodation.

and importance of IRS is not at all because of its perks and privileges, but because of its importance as the most important fiscal tool in the hands of the Govt to raise revenue.

IRS officers are one of the most important public sector managers of Pakistan, but if u are thinking about perks and privileges, then i would rather u still preferred DMG and PSP over other groups...IRS may be at third or 4th......

Regards and Parayers,
NH, AssistantCommissioner Inland Revenue

A group/department which is responsible for gathering more than 60% of the revenue for budget in future will be far important for the health of our country. DMG officers of grade 18 and 19 told me the importance of this group and told that it is better than even DMG and PSP. This group is excellent for those who are looking for an excellent career and want to run the govt. financial machinery in future. The future of our country belongs to technical people who are skilled in finance and economics knowledge rather those who have little information about these fields and only knows how to move summaries from top to bottom and here and there. From future need aspect IRS is my number one group.

thanks a lot for sharing such a nice and important information

My pleasure sir. IRS after few years will be the the number one priority of top candidates because soon everybody will be knowing the importance of this group. I belong to Leghari family of DG Khan and in my family politician and bureaucrats are too many and our family discussions are either politics or CSS so i always give their views in my posts while talking about groups of CSS.

With due respect,this is a very far fetched dream..Mark my words,and mark them well..IRS is never going to get among even the top 3 preferences of candidates,let alone the first preference..Lets meet after 20 years if we still are alive,and see where does it stand..Customs Service of Pakistan will always beat IRS even to the 4th preference position..

__________________
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