Govt issues revised ordinance on NBR split, abolition

The government has issued a revised ordinance on the split of the National Board of Revenue (NBR) into two separate divisions paving the way for revenue officials to head the top and senior positions of the Revenue Policy Division.

Now, officials with experience working on the macroeconomy, trade policy and planning can serve as the secretary of the Revenue Policy Division, one of the two divisions that will be formed after the dissolution of the National Board of Revenue (NBR) as per the new law issued last night.

In the original ordinance issued on May 12 as part of revenue system reforms, there was an ambiguity on whether the officials from tax and customs cadres would be given priority for the position of secretary, one of the major areas of contention that ignited huge protests in the revenue administration, crippling mainly import and export-related activities by the end of June.

The ordinance, which will also abolish the NBR, will be effective based on the date fixed by the government, according to the revised law.

The government has framed the law in its effort to reform tax systems and improve tax collection, which is one of the lowest in the world, and to fulfil a condition of the International Monetary Fund tied to a $5.5 billion loan given to Bangladesh.

As per the law, the Revenue Policy Division will be responsible for formulating tax policies, conducting research, and handling international agreements, while the Revenue Management Division will focus on field-level revenue collection, implementation of tax laws, and human resource management.

The move follows years of recommendations from international institutions such as the World Bank and the IMF, which have long urged Bangladesh to separate policy-making and revenue collection functions to reduce conflicts of interest and improve governance.