We welcome the government's decision to split the National Board of Revenue (NBR) into two separate divisions-Revenue Policy Division and Revenue Management Division-and to abolish the Internal Resources Division (IRD). This move aims to streamline the country's revenue sector and raise the tax-to-GDP ratio.
Reforms are indispensable in any vibrant society to improve service delivery, ensure good governance, and enhance the well-being of its citizens. Reforms such as this can improve the effectiveness of policy-making and address long-standing challenges where the NBR has struggled.
The Government has assured that this step will help broaden the tax base and strengthen direct taxation, thereby reducing the overdependence on indirect taxes.
Experts have noted that placing both tax policy formulation and implementation under a single institution is problematic. It creates conflicts of interest among officials and hampers efficiency. Furthermore, weak governance and bureaucratic overlap have made the organisation ineffective and demoralised for both staff and stakeholders.
It is now crucial for the government to maintain harmony between the two new divisions as revenue policy and revenue management are inherently complementary. Policy must always be informed by practical insights from the management side to ensure the development of realistic plans and procedures.
As ordinary taxpayers, we strongly wish to see a more efficient and robust revenue system in our country. There is an urgent need for an automated taxation system that increases direct tax collection and consequently reduces reliance on indirect taxes.
We humbly urge that the newly formed divisions be managed by experienced personnel with a strong background in revenue administration, and that they operate with honesty, neutrality, and professionalism. Above all, the attitude of revenue officials must be taxpayer-friendly, proactive, and non-authoritarian. Otherwise, this commendable reform initiative may fall short of achieving the desired objectives.
Md. Refatul Hossain
Additional Director (retd.)
Department of Agricultural Extension (DAE)
Faridpur Region.
