United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday firmly said the National Board of Revenue (NBR) will continue operating as two distinct entities—tax and customs—clarifying that all previous confusion over the separation has now been resolved following discussions with cadre officials. “Officials have been informed that the decision to split the NBR—based on national interest, public interest and business considerations—will stand as it is,” he said after a meeting with the cadre officials at the Secretariat. Dr Salehuddin said there are still several implementation steps ahead, when the government will consider how many of the officials’ demands can be accommodated. Concerns of the officials will be considered during the formulation of regulations for the two newly formed departments, he said, adding, “We will try to incorporate their demands as much as possible while drafting the new rules.” NBR strike deepens revenue crisis, threatens fiscal stability: Economists Dr Salehuddin, however, said there will be no further formal meetings with NBR officials regarding this issue. “There is already an advisory committee in place. Officials will communicate with that committee moving forward,” he said. When asked whether today’s meeting was fruitful, Dr Salehuddin replied, “Yes, the meeting was productive.” On the question of when the newly separated departments of the NBR will begin operations, he responded, “First, a gazette notification must be issued. Even before that, there is a lot of groundwork to complete.” When asked how long the full implementation would take, Dr Salehuddin said, “We are trying to move as quickly as possible.” Regarding whether this would be completed before or after the budget, he commented, “The budget will be presented on June 2. How could we do this before that?” In response to whether NBR officials are satisfied with today’s meeting and whether they will end their protest, Dr Salehuddin said, “We have told them to withdraw their movement. Whether they do or not is not my concern.” When approached for comment, NBR Chairman Md Abdur Rahman Khan said, “The Finance Adviser and other advisers have listened to the concerns voiced by the officials. The ministry will now take further action.” NBR Reform Unity Council suspends pen-down programme The meeting was attended by Energy Dr Muhammad Fouzul Kabir Khan, Environment and Forest Adviser Syeda Rezwan Hasan and senior officials from the Ministry of Finance and the NBR. On May 12, a government notification was issued, officially dividing the NBR into two departments: Revenue Policy and Revenue Administration. NBR officials strongly protested the move, claiming that officers from the tax and customs cadres have been sidelined and subjected to undue control under the new structure. In response, many officials engaged in the recent pen-down strike. Meanwhile, the Finance Ministry in a press release said representatives from the Revenue Reform Advisory Committee of the National Board of Revenue, BCS (Tax) cadre, and BCS (Customs and Excise) cadre presented their views and opinions at the meeting regarding the ‘Revenue Policy and Revenue Administration Ordinance, 2025’. The concerns, suggestions and opinions expressed by the officials regarding the ordinance were heard with due importance. The Adviser assured that the issues raised would be duly considered, the media release added.

The first day of the three-day work abstention called by the NBR Unity Council, a platform comprising officers and employees from the Customs, VAT and Income Tax wings of the National Board of Revenue (NBR), was observed on Tuesday. The NBR officials refrained from work from 10 am to 1 pm on the first day. The protest comes in response to the government’s decision to split the NBR, allegedly bypassing the recommendations of the NBR Reform Committee. During visits to various rooms of the NBR in Agargaon and other offices across the city, it was observed that officials and employees had put down their pens to symbolise participation in the work abstention programme. Speaking to several participants, they said they are not against the division of the NBR but stressed that it should be carried out through fruitful discussions and in alignment with the reform proposals of the NBR Reform Committee. “We have no problem with the splitting, but in the name of that, paving the way for the intrusion of admin cadre people at various levels of the revenue divisions is not acceptable at all,” said an official. The work abstention will continue from 10 am to 3 pm on Thursday and again from 10 am to 3 pm on Saturday. NBR staff announce 3-day work abstention protesting ‘secret’ split decision For the past several weeks, NBR officials have been protesting, demanding the removal of the provision that allows administrative cadre officers to be appointed under the new law. The legislation, which divides the NBR into two separate entities—the Revenue Policy Division and the Revenue Management Division—has become a major point of contention. The government formed the NBR Reform Committee on October 9 last year, comprising former NBR chairmen Muhammad Abdul Mazid and Nasiruddin Ahmed, along with former members Delwar Hossain and Aminur Rahman. The ordinance was reportedly published secretly at midnight on Monday. Under the new law, the government may appoint any suitably qualified government officer as secretary or senior secretary of the newly created Revenue Policy and Revenue Management Divisions. NBR spilt into 2 divisions to overhaul tax system: Govt

The government on Tuesday said the dissolution of the National Board of Revenue (NBR) aims to separate tax policy-making from tax administration to improve efficiency, reduce conflicts of interest, and broaden the country’s tax base. Chief Adviser's press wing shared a statement with the media explaining why Bangladesh is splitting the National Board of Revenue. The statement is given below. "Established over fifty years ago, the NBR has consistently failed to meet its revenue targets. Bangladesh’s tax-to-GDP ratio is approximately 7.4%, one of the lowest in Asia. For context, the global average is 16.6%, while Malaysia’s stands at 11.6%. To achieve the development aspirations of its people, Bangladesh must raise its tax-to-GDP ratio to at least 10%. Restructuring the NBR is critical to this goal. There is growing consensus that a single institution should not be responsible for both creating tax policy and enforcing it—such an arrangement breeds conflicts of interest and promotes inefficiencies. For years, businesses in Bangladesh have complained that policies have often prioritized revenue collection over fairness, growth, and long-term planning. Govt abolishes NBR, splits it into two new revenue divisions Several longstanding issues have plagued the NBR: Conflict of Interest: Housing both policy-making and enforcement under one roof has led to compromised tax policies and widespread irregularities. Under the current system, officials responsible for tax collection are not subject to any accountability framework and are often able to negotiate payments from tax defaulters compromising public interest. In many cases, tax collectors are reluctant to take action against tax evaders and assist them in doing so for personal interest. There is no system and process in place for objectively measure the performance of tax collectors and their career progression has not been linked with measurable performance indicators. Inefficient Revenue Collection: The dual mandate diluted focus on both policy formulation and institutional capacity-building. As a result, the tax net remains narrow, and revenue collection has lagged far behind potential. Weak Governance: The NBR has suffered from inconsistent enforcement, poor investment facilitation, and systemic governance issues, all of which have eroded investor confidence and weakened the rule of law. Bureaucratic Overlap: The existing structure—where the head of the Internal Resources Division also leads the NBR—has created confusion and inefficiency, hampering effective tax policy design and delivery. Demoralisation and Internal Tensions: The reform process has triggered anxiety among seasoned tax and customs officers, some of whom feel they may be sidelined or overlooked. NBR staff to intensify agitation against bifurcation of the revenue agency How the Restructuring Will Help: The new structure is designed to address these chronic problems through a clearer, more accountable framework: Clear Division of Responsibilities: The Revenue Policy Division will be responsible for drafting tax laws, setting rates, and managing international tax treaties. The Revenue Management Division will oversee enforcement, audits, and compliance. This separation ensures that the officials setting tax obligations are not the same as those collecting them, eliminating opportunities for any sort of connivance. Improved Efficiency and Governance: By allowing each division to focus on its core mandate, the reform will enhance specialisation, reduce conflicts of interest, and improve institutional integrity. Expanded Tax Base and Stronger Direct Taxation: The reform is expected to broaden the tax net, reduce dependence on indirect taxation, and strengthen direct tax collection by placing skilled professionals in appropriate roles. Better, More Development-Oriented Policies: A dedicated policy unit can craft evidence-based, forward-looking tax strategies instead of reactive policies driven solely by short-term revenue goals. Greater Investor Confidence: Transparent, predictable policies and a professional tax administration are expected to attract investment and reduce complaints from the private sector. Ultimately, this restructuring is not just a bureaucratic reshuffle—it’s a necessary step toward building a fairer, more capable tax system. Strengthened policy-making and cleaner tax administration will be vital for Bangladesh to meet the needs—and realize the hopes—of all its citizens."