NBR lost at Night
Md. Juwel Azad : Bypassing the reform commission’s advice, the interim government most shockingly passed an ordinance by dissolution of the National Board of Revenue by replacing two distinct entities and losing the supervisory and administrative function of the Finance Ministry. Raising concerned from the corner of think tank of the Country. Before going to the topic headed, let me address the statement made by one Director Mr. Towfiqul Islam Khan of the Centre for Policy Dialogue (CPD) said that “We’ve long advocated for this reform, but the way it was carried out – in secret, late at night – creates doubts.” and further he added that “There’s no clarity on how much of the reform committee’s advice was considered. Without transparency and stakeholder involvement, implementation may falter.”
The night ordinance regarding reforms in the revenue system of Bangladesh on 13.05.2025 wherein the National Board of Revenue (NBR) has been dissolved and replaced two distinct entities through Revenue Policy and Revenue Management Ordinance, 2025. One is the Revenue Policy Division and another is the Revenue Management Division aiming improving efficiency, reducing conflicts of interest, and broaden the country’s tax base.
The Chief Adviser’s office issued a clarification regarding this by giving examples of Malaysia i.e. the ratio of collection of revenue stands tax-to-GDP ratio at 11.6 percent wherein Bangladesh stands tax-to-GDP ratio is approximately 7.4 percent without considering the economic size of two countries. By emphasizing the responsibilities of NBR is contributing for formulation and continuous re-appraisal of tax-policies and tax-laws, negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration. None forget the NBR’s role who collected almost 97% of tax revenue and almost 85% of total revenue for the government of Bangladesh. (Reported in NBR Annual Report published in 2016-2017).
The interim government failed to appreciate the current role of NBR and necessity reforms of its. Let me catch the statement of the Finance Advisor Mr. Salehuddin Ahmed who made a comment to the Journalist on 13.05.2025 “there will be no effect on revenue collection due to the commotion among tax officials over the dissolution of the National Board of Revenue (NBR) and the separation of tax policymaking from administration” but the reality shows different. The revenue officers already took possession over the street and placed demand of dissatisfaction over the night ordinance by observing PEN BREAK in office duty.
They believe that this ordinance will create bureaucratic interference over function of revenue collection and policy. That the two new division of ordinance,2025 will be headed by Admin cadre those have no filed level knowledge of revenue collection and management in vat tax customs and excise. Such ordinance gives nothing but creating bureaucratizing complex from which the people of country wants to get relief from painful experience from the system of bureaucrat.
The finance advisor admitted that the revenue collection increased 2 percent year-on-year in the current fiscal year 2024-25. So, it is not frustrating the present system and capacity of NBR. What will be the problem of new ordinance? In nutshell, the entire revenue system will face lack of accountability and the same may reduce the collection of revenue, bureaucratic influence will be seen over the independent of function of revenue officers and finally the investors confidence will be weaken.
Before ending, let me recall the spirit of nation belongs to the Parliament, and the Parliament is the reflection of the peoples will. The ministries including the ministry of finance is governed by the Minister who has the nexus to the people and accountability to the people. The new Revenue Policy and Revenue Management Ordinance, 2025 braked the connectivity of common people to the process of revenue by dissolving the supervisory authority of ministry of finance and created confusion over the existing authority concerned. In this regard, further evaluation need to be considered from the every stakeholders of the country and the interim government should publish the report of reforms.
Author is an Advocate, Supreme Court of Bangladesh.
