Revolution in Revenue Administration: NBR Dissolved and New Divisions Created in Secrecy

In a move shrouded in secrecy, the government has abolished the longstanding National Board of Revenue (NBR) and established two new divisions to oversee the country’s revenue affairs. An ordinance issued late Monday night has restructured the tax administration, signaling a significant shift in fiscal governance.

The organization has been split into two distinct entities: the Revenue Policy Division and the Revenue Management Division. The ordinance, known as the ‘Revenue Policy and Revenue Management Ordinance,’ was enacted despite protests from the Bangladesh Civil Service (BCS) Income Tax and Customs cadre officers, whose opinions were largely bypassed.

While the ordinance introduces only minor changes to the scope of work for the Revenue Policy Department, it delineates clear roles for the new divisions. The Revenue Policy Division will be tasked with monitoring the implementation of tax laws and assessing the overall tax collection landscape. Meanwhile, the Revenue Management Division will take on primary responsibility for actual revenue collection activities.

Notably, the administrative posts within the Revenue Management Department will be filled by officers from both the administration cadre and the income tax and customs cadres, indicating an effort to maintain continuity amidst the overhaul.

This sudden restructuring marks a pivotal moment in the country’s fiscal policy, raising questions about the future direction of revenue administration amid concerns over transparency and stakeholder engagement.