During our first week of internship, we learned about the Federal Board of Revenue (FBR) and its two

main areas: Internal Revenue Service (IRS) and Customs.

The IRS includes income taxes, general sales taxes, withholding taxes, and federal excise taxes.

On the other hand, customs is responsible for monitoring import and export activities as well as anti-
smuggling activities.

The two areas are divided into different wings and departments.

We have gained a better understanding of the complexities of withholding taxes, which are deducted
from the salaries of government employees.

Working in the Tax Enforcement and Collection department, we learned about their methods of
communicating with the public to obtain their contact information, the process of conducting audits of
individuals and organizations, as well as different types of tax fraud and how to identify them.

In general, FBR consists of two main wings, Internal Revenue Service (IRS) and Customs.

They are: • Inland Revenue: The Department of Inland Revenue, established in 2009, is responsible for
administering state taxes such as sales tax, income tax and excise tax federal.

These types of taxes are not only different in nature but are also interconnected in practice, as
international experience has confirmed.

Integrating these taxes into a single administrative structure has long been considered necessary but has
not been implemented in Pakistan's economic history.

Motivated by the need for modern tax techniques and the objective of improving the tax-to-GDP ratio,
the FBR established the Inland Revenue Authority, amalgamating these three national taxes.

The establishment of this department is expected to bring greater convenience to taxpayers, allowing
them to resolve tax matters within a structured organizational framework.

Additionally, it will contribute to efficient tax administration by providing easy access to taxpayer data
related to various national taxes.

• Customs Pakistan Customs serves as the agency that protects the country's borders, prevents the
movement of illegal goods, and promotes legal trade.

It plays a vital role in generating revenue for the Pakistani government through imposing taxes on cross-
border traded goods.

In addition, it helps protect national industry, discourages the consumption of luxury goods, and
stimulates the development of underdeveloped areas.