A writ petition has been filed with the High Court challenging the legality of the "Revenue Policy and Revenue Management Ordinance 2025" that dissolved the National Board of Revenue (NBR) and replaced it with two new divisions.
Filed on Sunday by Supreme Court lawyer Md Juwel Azad, the petition sought a stay order from the High Court on the operation of the ordinance.
It also sought a directive upon the respondents to publish the revenue management system's reform proposal made by the group of stakeholders within 30 days from the receipt of the court order and to inform the court of the same by submitting an affidavit in compliance within 60 days.
Besides, the petition prayed to the High Court to issue a rule upon the respondents to show cause as to why the ordinance shall not be declared illegal.
The law secretary and the finance secretary have been made respondents in the petition.
The petitioner said he has already mentioned the petition in a bench that may hold a hearing this week.
Mr Azad also said the interim government dissolved the NBR after passing the ordinance and replaced it with two distinct entities, losing the supervisory and administrative functions of the Internal Resources Division under the finance ministry bypassing the reform commission's advice.
"The Ministry of Finance is already overloaded with the tasks of maintaining the banking and financial sectors; insurance, security and exchange matters; and some other issues regarding finance. Now creating two new divisions under the head of the finance ministry will lead to revenue system overload and bureaucratic complexity," the petition read.
The entire revenue system will face lack of accountability and the same may reduce the collection of revenue while bureaucratic influence will be seen over the independent function of revenue officers and finally, investors' confidence will be weakened, it also said.
The interim government on May 12 dissolved the NBR and replaced it with two new divisions under the finance ministry to modernise the tax administration and boost revenue collection. Under the ordinance, the government established the Revenue Policy Division and the Revenue Management Division. The policy division will design tax laws, set rates, and oversee international tax treaties, while the management division will handle enforcement, audits, and compliance for income tax, VAT, and customs. Meanwhile, the pen-down strike by NBR officials and employees continued for the fourth consecutive day on Sunday as they pressed on with a three-point demand, including the repealing of the ordinance.
The strike was observed from 10am to 3pm and will continue today as well.
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