Govt issues revised ordinance on the split and abolition of NBR
The
government has issued a revised ordinance on the split of the National Board of Revenue (NBR) into two
separate divisions paving the way for revenue officials to head
the top and senior positions of the Revenue Policy Division.
Now, officials with
experience working on the macroeconomy, trade policy and planning can serve as
the secretary of the Revenue Policy Division, one of the two divisions that
will be formed after the dissolution of the National Board of Revenue (NBR) as per
the new law issued last night.
In the original
ordinance issued on May 12 as part of revenue system reforms, there was an
ambiguity on whether the officials from tax and customs cadres would be given
priority for the position of secretary, one of the major areas of contention
that ignited huge protests in the revenue administration, crippling mainly
import and export-related activities by the end of June.
The ordinance, which will
also abolish the NBR, will be effective based on the date fixed by the
government, according to the revised law.
The government has framed
the law in its effort to reform tax systems and improve tax collection, which
is one of the lowest in the world, and to fulfil a condition of the
International Monetary Fund tied to a $5.5 billion loan given to Bangladesh.
As per the law, the Revenue
Policy Division will be responsible for formulating tax policies, conducting
research, and handling international agreements, while the Revenue Management
Division will focus on field-level revenue collection, implementation of tax
laws, and human resource management.
The move follows years of
recommendations from international institutions such as the World Bank and the
IMF, which have long urged Bangladesh to separate policy-making and revenue
collection functions to reduce conflicts of interest and improve governance.