Islamabad, March 26, 2026 – The Large Taxpayers Office Islamabad (LTO Islamabad) has delegated key powers to Inland Revenue (IR) officers to accelerate the assessment and processing of taxpayer cases, aiming to improve efficiency and reduce delays in tax administration.
According to a jurisdiction order issued on March 17, 2026, additional commissioners of Inland Revenue across all zones have been authorized to handle and process cases within their respective jurisdictions. The move is expected to streamline decision-making and enhance responsiveness in tax-related matters.
Expanded Powers Granted to IR Officers
Under the new directive, additional commissioners have been empowered to exercise multiple functions, including amendments to assessments and recovery orders under relevant provisions of the Income Tax Ordinance, 2001. These include:
• Amendment of assessments under Section 122(5A)
• Amendment and further amendment of recovery orders under Section 161(3)
• Processing of cases to give effect to orders under Section 124, including finalized cases under Sections 122(5A), 161(3), and Section 66A of the repealed Income Tax Ordinance, 1979
• Authority to modify orders under Section 124A for finalized cases
• Rectification of mistakes under Section 221 in finalized assessments and recovery cases
Objective: Faster Processing and Improved Compliance
The delegation of authority is intended to reduce procedural bottlenecks and enable faster resolution of taxpayer cases. By empowering field officers, the LTO aims to improve operational efficiency, enhance compliance, and ensure timely execution of tax-related decisions.
Officials believe that decentralizing certain powers will allow Inland Revenue officers to handle routine and technical matters more effectively, thereby reducing workload at higher administrative levels and speeding up the overall assessment process.
Strengthening Tax Administration
The reform reflects ongoing efforts by Pakistan’s tax authorities to modernize administrative procedures and improve taxpayer services. By granting additional authority to zonal officers, the LTO Islamabad is expected to improve coordination, transparency, and responsiveness within the tax system.
The move is part of broader initiatives to streamline tax operations, strengthen enforcement, and support a more efficient and taxpayer-friendly regulatory environment.