ISLAMABAD: The Federal Board of Revenue (FBR) has been empowered to establish the Directorate General (Field Compliance) Inland Revenue (IR) to improve tax compliance under the Budget 2026-27.
The FBR has been assigned an ambitious tax collection target of Rs15,264 billion for the fiscal year 2026-27, against a revised target of Rs12,983 billion for the outgoing fiscal year 2025-26, ending on June 30. The FBR will have to rely heavily on effective enforcement and compliance measures to achieve the desired tax collection target in the next fiscal year.
The National Assembly has approved the Finance Bill 2026-27 under which Section 228A empowers the FBR to establish a new directorate to ensure effective compliance. Under Section 228A, the Directorate General (Field Compliance) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may appoint through notification in the official Gazette.
The Board may, by notification in the official Gazette: (a) specify the functions and jurisdiction of the Directorate General and its officers; and (b) confer the powers of authorities specified in Section 207 upon the Directorate General and its officers. Under Section 227D, the National Faceless Centre will be established. Notwithstanding anything to the contrary contained in any provision of this Ordinance, the Board may, for proceedings under this Ordinance in a faceless manner, establish a National Faceless Centre and specify its jurisdiction, powers and functions.
The National Faceless Centre shall comprise a director general and as many chief commissioners, commissioners, additional commissioners, deputy commissioners, assistant commissioners and any of the Income Tax Authorities mentioned in Section 207, along with support staff, as the Board may deem fit for the purposes of this section. The Board may design algorithms for assigning any function or jurisdiction under this section to any of the authorities. It will comprise as many wings and units as may be prescribed by the Board. The functions of audit, assessment and quality control in a specific case for a specific tax year shall be performed by separate officers.
All communications among the units, or with the taxpayer, an authorised representative of the taxpayer, or any other person with respect to information, documents, evidence or any other details that may be necessary, shall be conducted through electronic means.
