Tax authority restructures Inland Revenue field formations by establishing RTO-II Lahore and reorganising corporate tax administration.

ISLAMABAD: The Federal Board of Revenue (FBR) has abolished the Corporate Tax Office (CTO) Islamabad, established a new Regional Tax Office (RTO)-II Lahore, and renamed the Medium Tax Office (MTO) Karachi as Corporate Tax Office (CTO)-II Karachi as part of a major restructuring of its Inland Revenue field formations.

The changes were notified through an official order issued on July 16, 2026, following decisions taken at the 11th meeting of the Board-in-Council for FY2025-26, held on June 29, 2026.

According to the FBR, the restructuring has been carried out under the powers conferred by Section 4(1)(r) of the Federal Board of Revenue Act, 2007, and took effect immediately.

CTO Islamabad abolished

As part of the administrative overhaul, the Corporate Tax Office Islamabad has been abolished.

To facilitate corporate taxpayers previously administered by the office, the FBR has created Corporate Zone-I and Corporate Zone-II within the Regional Tax Office (RTO) Islamabad. In addition, a separate Corporate Zone has been established within the Regional Tax Office (RTO) Rawalpindi.

The restructuring is intended to streamline the administration of corporate taxpayers across the Islamabad and Rawalpindi regions while improving operational efficiency.

New RTO-II established in Lahore

The FBR has also expanded its Inland Revenue network by establishing Regional Tax Office-II Lahore, creating an additional tax office in one of Pakistan’s largest tax jurisdictions.

Following the reorganisation, the existing Regional Tax Office Lahore has been redesignated as Regional Tax Office-I Lahore.

Officials said the move is aimed at improving tax administration and facilitating more effective management of taxpayers in Lahore.

Karachi offices renamed

The restructuring also includes the renaming of two major Inland Revenue offices in Karachi.

Under the revised organisational structure:

Previous Name	New Name
Medium Tax Office Karachi	Corporate Tax Office-II Karachi
Corporate Tax Office Karachi	Corporate Tax Office-I Karachi
Regional Tax Office Lahore	Regional Tax Office-I Lahore

The redesignation aligns the names of the field formations with the FBR’s updated organisational framework and corporate tax administration model.

Part of wider administrative reforms

The latest restructuring forms part of the FBR’s broader programme of administrative reforms aimed at modernising tax administration, strengthening corporate tax management and enhancing the efficiency of Inland Revenue field formations across the country.

The tax authority said the revised structure became effective immediately and is expected to improve operational coordination, taxpayer facilitation and the management of corporate tax affairs.