Written by The Banking Post
The government has accelerated the long-debated bifurcation of the National Board of Revenue (NBR), aiming to show progress before the IMF-World Bank annual meetings in Washington on October 13–18.
Splitting the NBR into two divisions—Revenue Policy and Revenue Management—was mandated through an ordinance in May, later amended in September after protests by tax, VAT and customs officials over job security and promotion prospects. The reform is also tied to budgetary-credit support from development partners.
To fast-track implementation, five committees have been formed to finalise recruitment rules, cadre composition, promotions, the organogram, and rules of business. These panels, made up of income tax, VAT, and customs officials, are expected to submit reports to the NBR chairman within 10 days. Senior revenue officials say the interim government wants the process completed before the February elections.
“The interim government is receiving full cooperation from NBR leadership in carrying out the reform,” said a senior NBR official, dismissing concerns about delays.
The move is part of the Dr Yunus administration’s reform agenda, though it faced fierce resistance earlier this year that nearly paralysed domestic revenue mobilisation.
Former VAT wing member and NBR reform committee member Farid Uddin noted that while drafting rules is not difficult, political will is key. “Bifurcation alone won’t be enough to attract investment unless more fundamental reforms—like digitisation, rationalisation of tax at source, and adoption of international best practices—are also addressed,” he cautioned.
He also pointed out that investors and businesses had not specifically demanded separation of the NBR, but instead called for integrated services free from harassment.
