The National Board of Revenue (NBR) has undertaken a major administrative reform and expansion of its Customs and VAT wings in a bid to widen the tax net and strengthen revenue collection.

According to an official order issued on Tuesday by the Internal Resources Division (IRD), a total of 12 new commissionerates, customs houses and specialised units have been established under the NBR.

Under the new structure, 373 cadre posts and 3,224 non-cadre posts — totalling 3,597 new positions — have been created to enhance institutional capacity across the Customs and VAT wings.

The expansion aims to promote self-reliance in the national economy through increased revenue mobilisation, improve service delivery to ensure a business-friendly environment, and make the indirect tax system more dynamic and effective, the IRD said in a statement.

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Following proposals from the NBR, the reform initiative received administrative approval from the Ministry of Public Administration, the Finance Division and the Cabinet Division before the IRD issued the order.

As per the order, the expansion will be implemented in three phases, establishing five new VAT commissionerates, four new customs houses and three specialised offices.

In addition to the creation of new units, the order also provides for the expansion of existing commissionerates and customs houses, as well as the decentralisation of customs and VAT intelligence operations. Customs activities at Dhaka airport’s third terminal will also be expanded under the reform plan.

The NBR expects that the restructuring will enhance the institutional capacity of indirect tax collection, increase the tax-to-GDP ratio through improved revenue mobilisation, stimulate investment by facilitating trade, and accelerate the country’s overall economic growth.