Bangladesh鈥檚 interim government has created two more divisions under the finance ministry by dissolving the National Board of Revenue in a move to modernise tax administration and boost revenue collections
The government on midnight past Monday promulgated an ordinance, approved by President Mohammed Sahabuddin and signed by law secretary Hafiz Ahmed Chowdhury, to this effect.
The ordinance split the NBR in two new divisions 鈥斺�楻evenue Policy Division鈥� and 鈥楻evenue Administration Division鈥� 鈥� in keeping with a key condition set by the International Monetary Fund to separate tax policy from administration.
NBR officials have been opposing the decision since the council of advisers in April approved the draft ordinace aimed at splitting the NBR into two entities.聽
Finance adviser Salehuddin Ahmed said the NBR officials have nothing to worry about regarding the creation of the two divisions.
鈥楾he interest of the NBR officials is protected,鈥� he said on Tuesday, replying to queries from journalists.
He also said that policy and implementation divisions operate separately in every country to check conflicts of interest.
Meanwhile, the Chief Adviser鈥檚 Office also issued a statement explaining the decision, saying it聽aims to separate tax policy-making from tax administration to improve efficiency, reduce conflicts of interest, and broaden the country鈥檚 tax base.
鈥楾here has been a growing consensus that a single institution should not be responsible for both creating tax policy and enforcing it,鈥� the statement added.
The statement also said that聽several longstanding issues have plagued the NBR over the years, including conflict of interest, inefficient revenue collection, weak governance, bureaucratic overlap, demoralisation, and internal tensions.
According to the statement, the new structure is designed to address these chronic problems through a clearer, more accountable framework, including a clear division of responsibilities, improved efficiency and governance, expanded tax base, stronger direct taxation, development-oriented policies, and investor confidence.
The advisory council approved the draft of the Revenue Policy and Revenue Management Ordinance, 2025 on April 17.
Ever since, officials and staff of all the NBR tiers, including Income Tax and Customs departments, have聽 been staging protests to demand the withdrawal of the ordinance.
They had submitted seven major recommendations on behalf of their respective associations.
According to the ordinance, the policy division will design tax laws, set rates, and oversee international tax treaties.
In contrast, the management division will handle law enforcement, audits, and compliance for income tax, VAT, and customs.聽聽
The government, the ordinance says, can appoint any suitably qualified government officers to the posts of secretary or senior secretary for the new revenue policy and management divisions.
The proposed law mentioned that it is appropriate and necessary to establish a Revenue Policy Division and a Revenue Management Division by restructuring the existing structure to increase transparency, accountability, and dynamism of revenue collection activities.
As per the ordinance, officers with experience in income tax, value-added tax, customs, economics, business administration, research and statistics, administration, audit and accounting, and legal work will fill various posts in the Revenue Policy Division.
Administration cadre officers and field-level employees of the Revenue Management Division will fill the various administrative posts in the Revenue Management Division.
As per the ordinance, the government would fix a date through another gazette to make the ordinance effective.
After dissolving the NBR, the employees of the agency would be taken under the revenue management division. Considering their qualification, a number of employees may be taken under the policy division.聽聽
Meanwhile, the NBR officials from the BCS Income Tax and Customs cadres, non-cadre officials, and third- and fourth-grade employees of the Income Tax and Customs departments have been demonstrating against the ordinance for weeks.
On Tuesday afternoon, around 200-300 officials of the NBR Sangskar Oikya Parishad (NBR reform unity council) protested at the NBR building at Agargaon in the capital.
During the protest, they聽announced a three-day pen-down strike 鈥� for May 14, 15, and 17 鈥� against the dissolution of the NBR.
Sadhan Kumar Kundu, the additional customs commissioner, told reporters that as per the announcement the protesters would continue their duties related to air passengers, exports, and the upcoming budget during the strike period.
All other tasks, however, will remain suspended.聽
He also said the strike will continue from 10:00am to 1:00pm on 14 May. On 15 and 17 May, they will observe the strike from 10:00am to 3:00pm.聽
They alleged that the government did not consult the stakeholders before making this drastic decision and urged the government to consider the NBR Reform Commission鈥檚 recommendations in this regard.
Meanwhile, NBR chair Abdur Rahman Khan left the NBR premises at around 4:10 pm on Tuesday during a sit-in programme.
Monalisa Shahrin Sushmita, joint commissioner of taxes, complained that the ordinance was issued at midnight without considering the commission鈥檚 recommendations.
鈥業f the ordinance is implemented, it will undervalue the experienced and skilled workforce,鈥� she added.
However, the government has issued the ordinance without making any significant changes to the original draft approved by the council on April 17.
