What Is FBR? Federal Board of Revenue Explained (English & Urdu)

FBR — the Federal Board of Revenue, known in Urdu as وفاقی بورڈ محصولات — is Pakistan’s federal tax authority, responsible for collecting income tax, sales tax, federal excise duty, and customs duty across the country.

What FBR Actually Does

  • Income Tax — administers the Income Tax Ordinance, 2001, covering individual, AOP, and company tax filing and collection
  • Sales Tax — GST on goods and, in specific cases, services (services sales tax is otherwise handled by provincial revenue authorities like PRA, SRB, KPRA, BRA)
  • Customs — duty collection on imports/exports
  • Federal Excise Duty — on specific goods and services subject to excise
  • IRIS Portal — FBR’s online system for registration, return filing, verification, and payments; nearly everything a taxpayer does with FBR now happens through IRIS rather than in person

How FBR Is Structured

FBR operates through Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across the country, each handling taxpayers in their jurisdiction. If you’ve ever gotten a notice, it typically comes from your assigned RTO/LTU based on your registered address or business location — see our guide on RTO transfer and jurisdiction change if you’ve moved and need your tax jurisdiction updated.

Why Understanding FBR’s Role Matters

A lot of confusion we see from clients comes from not knowing which tax authority handles what — FBR for federal taxes and customs, provincial revenue authorities for services sales tax. Getting this wrong means registering with the wrong authority or missing a filing obligation entirely because you assumed FBR covered something a provincial body actually handles.

Need help figuring out exactly what you’re required to register for and file? Get in touch via our contact page.

FAQs

Is FBR the same as the tax office people used to call “Income Tax Department”?
FBR is the modern federal revenue authority that consolidated what used to be separate income tax and customs administrations — the “Income Tax Department” terminology is largely legacy usage now.

Does FBR handle sales tax on services too?
Only in limited federal-territory cases — sales tax on services is generally a provincial matter, handled by PRA (Punjab), SRB (Sindh), KPRA (Khyber Pakhtunkhwa), or BRA (Balochistan) depending on where the service is rendered.

How do I know which RTO I’m registered under?
Check your IRIS profile — your registered jurisdiction is shown there, tied to your registered address at the time of NTN registration.

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