Despite widespread protests and ongoing demonstrations by revenue officials, the government has abolished the National Board of Revenue (NBR) and issued an ordinance to establish two separate entities—Revenue Policy Division and Revenue Administration Division.
On the night of May 12, President Mohammed Shahabuddin approved the ordinance, officially dissolving the NBR. The ordinance closely mirrors the earlier draft approved by the Advisory Council on April 17, with only minor adjustments, disregarding most demands raised by protesting revenue officials.
Since the release of the draft ordinance, officials from income tax, customs, and VAT sectors under NBR have been staging protests, calling for the cancellation of the move. They submitted seven major recommendations, most of which were ignored in the final version, sources confirmed. As a result, protest leaders may intensify their movement in the coming days.
Key demands included prioritizing BCS (Taxation) and BCS (Customs & Excise) cadre officials for leadership roles in the new divisions, which the ordinance fails to address. One contentious clause allows “any suitably qualified government official” to be appointed as Secretary or Senior Secretary of the Revenue Policy Division, sidelining professionals with decades of experience in tax policy.
Officials also objected to the clause allowing non-revenue professionals with backgrounds in economics, business, statistics, or administration to occupy critical policy-making roles, undermining institutional expertise in tax collection and policy.
Clause 5 of the ordinance sparked further controversy by authorizing the Policy Division to monitor tax law implementation and revenue collection—traditionally management responsibilities—potentially blurring administrative boundaries.
Though a minor change was introduced in clause 7(5), allowing BCS (Taxation) and BCS (Customs & Excise) officers to hold administrative posts alongside Administration Cadre officials, other proposed revisions, such as establishing a clear staffing committee or restoring priority to revenue-experienced officers, were excluded.
The government defends the reform by citing the need to separate policy-making from revenue collection to ensure greater transparency, accountability, and efficiency. Due to the dissolution of parliament, the ordinance was enacted under Article 93(1) of the Constitution, which grants the President authority to issue laws during such a period.
In response, a new alliance named “NBR Reform Unity Council” was formed at the NBR headquarters in Agargaon, Dhaka. Comprising BCS Income Tax and Customs officials, non-cadre staff, and third- and fourth-class employees, the group convened a nine-hour meeting and announced a sit-in program starting Tuesday.
Earlier, on May 8, the Bangladesh Tax Lawyers’ Association (BTLA) and Dhaka Taxes Bar Association (DTBA) jointly declared their opposition to dissolving the NBR, advocating instead for its proper reform. Special emergency meetings had already been held by associations within the income tax and customs departments, all demanding the immediate withdrawal of the ordinance.
LND/BG
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