The protesting staffers and officials of the National Board of Revenue (NBR) suspended their shut-down programme on Sunday following a clarification issued by the Ministry of Finance (MoF) on not dissolving the entity.
Clarification from the government regarding the Implementation of the Revenue Policy and Management Ordinance, 2025 has made it clear that the NBR would be elevated to the status of an independent and specialized division under the Ministry of Finance.
It also stated that while safeguarding the interests of the BCS (Customs & Excise) and BCS (Taxation) cadres, the framework for separating revenue policy formulation and strengthening the NBR as a specialized institution would be finalized through discussions with the NBR, the Revenue Reform Advisory Committee, and other key stakeholders.
In order to strengthen the NBR and separate the revenue policy function, necessary amendments to the ordinance will be made by 31 July 2025. It is to be noted that the ordinance will not be implemented before the required amendments are made.
Following the statement, one of the agitating officials said it had addressed the concern of the protesting officials and they would halt the demonstration.
However, a statement of the NBR reform Oikka Parishad said their demand seeking resignation of the NBR chairman was not met and their non-cooperation with the NBR chairman would be continued.
On 22 May 2025, the MoF issued a press note explaining the government's position on various demands raised by the NBR Reform Unity Council in relation to the Revenue Policy and Revenue Management Ordinance, 2025.
"The government had hoped that this explanation would address all concerns of the National Board of Revenue's tax, customs, and VAT services regarding the ordinance," the MoF statement said.
However, a recent press release from the NBR Reform Unity Council suggests that some ambiguities still remain. In this context, the government provides the following further clarifications:
The government expresses hope that this declaration will resolve all concerns of the officers and employees of the tax, customs, and VAT departments, and that all revenue collection and service delivery offices will promptly resume full operations with renewed dedication.
Talking to the FE on Sunday, Finance Adviser Dr Salehuddin Ahmed said there was a misunderstanding between MoF and NBR which would be resolved.
"The NBR officials have concern over appearances of the administration cadre officials, but I understand the tax policy formulation needs specialization," he said.
It is necessary to automate and reform the revenue board to increase country's tax to GDP ratio which is only 7.9 per cent in Bangladesh, he added.
The existing system allows tax officials to involve in corruption, he added.
"NBR is not other entities like BRTA or so. Whole land sea, air ports are being affected. Revenue collection jumps in May and June which has also faced a blow, he added.
It has been said that the government is losing Tk 30 to Tk 40 billion every day for this protests.
"NBR would be reconstituted, not dissolved. If they want, the name of NBR could be unchanged," he added. NBR has no secretary now, it has chairman, after the ordinance they will get two full secretaries, he added.
Not a single post at NBR would be curtailed, rather policy department would get 150 to 200 officials, he added.
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