New tax zones manned by few borrowed staffers

Expanding tax nets for a must-have boost to Bangladesh's deficient revenues falters as the National Board of Revenue (NBR) appointed top officials to newly created tax zones mostly sans supporting staff.

Sources have said most of the zones have yet to receive approval for appointing support-staff personnel either through regular recruitments or outsourcing.

Moreover, they add, some zones could not establish offices as the process of renting has yet to be finalised.

Revenue targets have already been set for the new zones.

Officials at the NBR say the zones are currently operating with support from officials of the old ones.

While the zones created in the first phase are facing fewer challenges, those in the second phase of new tax zoning are struggling significantly for being shorthanded.

On the other hand, the newly separated VAT and customs zones and units recently received initial approval from the public administration ministry for manpower recruitments.

However, the files were returned to the ministry to correct the size of the workforce, where mistakes had been made.

A joint commissioner of a new tax zone has told The Financial Express his office has yet to secure premises and currently lacks logistical support.

"Despite this, the board has already set revenue targets for us. It will be difficult to meet the targets," he says.

The Financial Express has also found a commissioner of another new zone still using a vehicle from his previous office.

In some cases, the rents of offices of the new zones are being paid from the budgets of the old ones.

In a circular on August 24, the public administration ministry urged all ministries and divisions to strictly adhere to the Rules of Business 1996 in conducting organisational and staffing-related activities.

The firman warns that many government entities were currently operating in violation of the established procedures.

Issued by Senior Secretary of the ministry Dr Md Mokhlesur Rahman, the circular notes with concern that several ministries and divisions are creating and filling posts, purchasing vehicles and updating organisational structures without following the requisite approval processes outlined in the Rules of Business 1996 and the Allocation of Business among the Different Ministries and Divisions.

It says the ministry's Organisation and Management Wing was responsible for approving the creation of revenue-funded posts, extending the tenure of temporary posts, upgrading designations, approving organisational structures, and issuing clearance for filling reserved posts.

The wing has observed that some entities were recruiting staff members without creating posts officially, completing only partial steps in the post-creation process or sending proposals for post creation and retention retrospectively.

It also has found instances of vehicles being purchased without inclusion in the Transport, Office Equipment, and Establishment (TO&E) list, and of project vehicles being used beyond project completion without being returned to the central transport pool.

The circular points out that several ministries and agencies failed to update their organisational structures to reflect their evolving mandates.

These irregularities, it reads, resulted in "various structural inconsistencies" across government entities.

Dr Rahman called on all secretaries to ensure that their respective ministries and agencies carry out organisational and staffing activities strictly in accordance with the standing Rules of Business.

He has also requested the issue of updating organisational structures be included as a regular item in the agenda of the inter-ministerial coordination meetings.

A copy of the circular was sent to Md Abdur Rahman Khan, secretary of the Internal Resources Division and also chairman of the NBR.

Copies were also forwarded to the cabinet secretary and the principal secretary to the chief adviser of the interim government.

newsmanjasi@gamil.com