The Government plans to complete the division of the National Board of Revenue (NBR) into two separate wings by December, Finance Adviser Salehuddin Ahmed confirmed on Thursday.
“We are implementing the revised law within this timeframe. Draft rules of business have already been prepared, and some related laws will need to be amended to move forward,” Ahmed said.
The move follows the amended ordinance on revenue policy and management issued on 2nd September. The ordinance, which will take effect on a date set by the Government, lays out the framework for dissolving the NBR and restructuring the tax administration.
Under the new law, the country’s tax system will be split into two entities: the Revenue Policy Division and the Revenue Management Division. The reform, which faced strong resistance from tax officials earlier this year, aims to strengthen tax collection in Bangladesh, where the tax-to-GDP ratio remains among the lowest globally.
The restructuring is part of the Government’s commitment to the International Monetary Fund (IMF), which approved a $5.5 billion loan for Bangladesh in January 2023.
According to Ahmed, both the Internal Resources Division (IRD) and the NBR will be abolished. Two new divisions will then operate under the finance ministry, each headed by a secretary. “We also have to finalise the organogram for the new structure,” he said.
The revised ordinance clears the way for revenue officials to take senior posts in the upcoming Revenue Policy Division. In the earlier version of the ordinance, issued on May 12, uncertainty over whether tax and customs cadre officials would be prioritised for top positions fueled widespread protests.
With the amendment, officials experienced in macroeconomics, trade policy, and planning will also be eligible to lead the policy division.
As outlined in the law, the Revenue Policy Division will handle tax policy design, research, and international agreements, while the Revenue Management Division will focus on field-level revenue collection, enforcement of tax laws, and workforce management.
