NBR split after amendments to ordinance: MoF

The ordinance to bifurcate the National Board of Revenue (NBR) will only be implemented after incorporating the necessary amendments to be made based on comprehensive discussions with all stakeholders, including the Revenue Policy Reform Advisory Committee, says the Ministry of Finance (MoF).

It said this in a press statement on Thursday quoting Finance Adviser Dr Salehuddin Ahmed.

The revenue policy and revenue management ordinance 2025, issued on May 12, sparked strong agitations among NBR officials.

To resolve the matter, the finance adviser, energy adviser, and environment adviser held a meeting with NBR officials on Tuesday.

Five distinguished members of the Revenue Policy Reform Advisory Committee and 13 representatives of the NBR Reform Unity Council attended the meeting.

Two representatives from the NBR Reform Unity Council and members of the Revenue Policy Reform Advisory Committee presented detailed statements there.

However, the NBR officials attending the meeting said they were not allowed to give detailed explanations.

The finance ministry claimed it had fruitful discussions, while NBR officials termed it "flop" and vowed to continue their non-cooperation movement.

In its statement, the ministry termed it "unjustified".

"Several essential steps must be completed before the implementation of the ordinance, such as the creation of new organisational structures for two departments and the formulation of new posts, which require approval from the Ministry of Public Administration, the budget management and implementation divisions of the Ministry of Finance, and final approval by the Secretary Committee," it said.

These are time-consuming processes, it also said.

Additionally, for the two new departments, changes must be made to the Allocation of Business, as well as the Income Tax Act, Customs Act, VAT Act, and related rules and regulations - also requiring significant time, the statement further said.

"Since these steps are prerequisites for implementing the ordinance, there is no possibility of dissolving the National Board of Revenue (NBR) at this time," it added.

It also said, "Since the implementation of the ordinance with necessary amendments is a time-consuming process, all activities of the National Board of Revenue will continue as before, and officers and employees of the customs and income tax cadres will perform their duties under the existing system."

While maintaining the interests of BCS (Taxation) and BCS (Customs and Excise) cadres, the administrative structure for their separation will be developed in consultation with the NBR and all relevant stakeholders, and necessary amendments will be made to the ordinance, the statement said.

"Under the current circumstances, all activities of the NBR will continue as usual," it added.

There is no plan to reduce the number of posts or designations for the members of the customs and tax cadres, the finance ministry said.

On the contrary, after the reforms, the number of posts will increase, including more opportunities for promotions and appointments to the rank of secretary, it said.

"In the greater interest of the state, and especially during the final months of the fiscal year, all officers and employees of the NBR are urged to be present in their offices during official hours, continue their assigned duties with dedication, maintain the revenue collection activities, provide quality service to the respected taxpayers, and thereby help accelerate the country's economic activities," it added.

On Thursday, despite accepting a mediation proposal presented through day-long discussions facilitated by two respected retired members of the revenue board, the representatives of the NBR Reform Unity Council refused to withdraw their programme and return to work.

Protesting NBR officers told The Financial Express they are yet to decide on the next steps in response to the finance ministry's statement.

However, earlier in the day, a team of NBR officials placed a memorandum to the chief adviser, received by his APS Sabbir Ahmed, demanding urgent repeal of the ordinance.

After the meeting with advisers, the NBR officials called a non-cooperation movement in addition to their last one week's pen-down strike and protests.

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