Written by The Banking Post
The government has issued a revised ordinance to split the National Board of Revenue (NBR) into two divisions, clearing the way for revenue officials to head senior positions in the newly formed Revenue Policy Division.
Under the revised law, officials with experience in macroeconomy, trade policy, and planning will be eligible to serve as secretary of the division. This comes after widespread protests in the revenue administration over an earlier version of the ordinance, issued on May 12, which left ambiguity about whether customs and tax cadre officials would get priority for the post. The unrest had disrupted import and export operations by the end of June.
According to the ordinance, which will also abolish the NBR, the law will come into effect on a date to be fixed by the government.
The reform is aimed at overhauling Bangladesh’s tax system and improving revenue mobilisation, one of the lowest in the world, while meeting conditions tied to the International Monetary Fund’s $5.5 billion loan package.
Once implemented, the Revenue Policy Division will handle tax policy, research, and international agreements, while the Revenue Management Division will oversee tax collection, implementation, and human resource management.
The move aligns with long-standing recommendations from the IMF and World Bank to separate policy-making from collection functions to reduce conflicts of interest and strengthen governance in the revenue sector.
