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Representational image. | ¶¶Òõ¾«Æ· file photo

Knowledge, skills and experience will be the determining factors for the appointment of top officials to the newly proposed two divisions created by splitting the National Board of Revenue, said officials.

The Revenue Policy Division and the Revenue Administration Division have been proposed by the interim government as part of reforms in the revenue board amid protests and work abstention by tax officials in July against the ordinance that bifurcated the NBR.


The interim government brought the protest to an end by giving assurance that it would amend the ordinance, which was issued in May, by an advisory committee led by adviser to the ministry of power, energy, and mineral resources Muhammad Fouzul Kabir Khan.

Amid the protests against the ordinance, the government also announced the NBR services as essential services. A number of senior officials of the revenue board also faced disciplinary actions, including forced retirement.

But contention over the appointment of top officials to the proposed divisions has remained as a major challenge in completing the NBR bifurcation.

Officials of the tax cadre and customs cadre have been seeking both the secretary posts in addition to five additional secretary posts, officials said.

‘Not all demands can be met,’ said Fouzul Kabir on Thursday.

Secretaries and other top officials of the proposed divisions will be determined by the government based on the criteria of knowledge, skills and experience, added the adviser.

The committee has held about half a dozen meetings with stakeholders, including businesses, tax official and customs officials and finalised recommendations on amending the ordinance and rule of the business for the new divisions.

Former NBR chairman Muhammad Abdul Mazid observed that the appointment criteria had been a win-win situation for the tax and customs officials and the government.

Noting that the tax collection a specialised job, Mazid said that tax and customs officials could also make themselves eligible for the secretary posts following the criteria set.

The Revenue Administration Division cannot be run by bureaucrats having no practical knowledge on customs and tax, he added.

Splitting the NBR has been aimed at improving efficiency of revenue administration, reducing conflicts of interests and widening the country’s tax base, one of the lowest in the world.

The country’s tax-to-gross domestic product ratio is about 7.4 per cent against the global average of 16.6 per cent.

For years, businesses in Bangladesh have complained that policies have often prioritised revenue collection over fairness, growth and long-term planning.

There is a growing consensus that a single institution should not be responsible for both creating tax policy and enforcing it on the ground.

Fouzul Kabir said that they were expected to issue the amended ordinance on the NBR in the next week.

He, however, said that framing the rules of business for the new divisions and their organograms would require some more time.

Finance adviser Salehuddun Ahmed has said that they would be able to start operations of the new divisions by December.

Officials said that the finance adviser on Thursday held a meeting with Fouzul Kabir to discuss the overall progress of the separation of the NBR.

Finance secretary Khairuzzaman Mojumder and NBR chairman Abdur Rahman Khan were also present at the meeting held at the finance ministry at the secretariat in the capital Dhaka.