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Revenue officials of the National Board of Revenue (NBR) may lose their dominance—or even their positions—within the upcoming Revenue Policy Division, as the government will be able to appoint any suitably qualified government officers to the post of Secretary or Senior Secretary of this new division.
“The government shall appoint a suitably qualified government officer to the post of Secretary or Senior Secretary of the Revenue Policy Division,” according to the draft law in this regard.
This new Division will be under the Ministry of Finance.
Even the Customs, Excise and Value Added Tax Appellate Tribunal and the Income Tax Appellate Tribunal will be attached departments of this Revenue Policy Division under the Finance Ministry.
The interim government recently approved the draft law to divide NBR into the Revenue Policy Division and Revenue Management Division.
It was proposed by the committee formed to provide recommendations on tax policy reforms, improvements in tax administration, automation, and other related matters.
The government formed the committee on October 9 last year, comprising former NBR chairmen Muhammad Abdul Mazid and Nasiruddin Ahmed and former NBR members Delwar Hossain and Aminur Rahman.
As per the draft law, various posts in the Revenue Policy Division will be filled by officers with experience in income tax, value-added tax, customs, economics, business administration, research and statistics, administration, audit and accounting, and legal work.
According to the proposed law, it is necessary to separate the government's revenue policy formulation activities and revenue collection management activities.
The proposed law states that it is necessary to create a Revenue Policy Division and a Revenue Management Division by restructuring the current system to make revenue collection more transparent, accountable, and efficient.
As Parliament is in a state of dissolution and it appears to the President, to his satisfaction, that circumstances exist which require immediate action, the President, by virtue of the powers conferred by Article 93(1) of the Constitution of the People's Republic of Bangladesh, will promulgate the Ordinance, which will be called The Revenue Policy and Revenue Management Ordinance, 2025.
After the promulgation of this Ordinance, the government shall, by notification in the official gazette, establish a new division called the Revenue Policy Division, which shall be under the Ministry of Finance.
The government will formulate an appropriate organizational structure for the Revenue Policy Division.
Scope of Work of the Revenue Policy Division
The Revenue Policy Division shall perform the following functions, namely:
(a) To introduce a sound tax system by following the principles of an expansive tax base, reasonable tax rates, and limited tax exemptions, with the aim of providing the necessary revenue for the administration of the state by prioritizing the goal of the overall economic development of Bangladesh.
(b) To take initiatives to formulate new laws mentioned in the schedule, such as The Stamp Act, 1899, and other related laws or to amend them.
(c) To formulate, amend, and provide interpretations of rules and regulations, notifications, S.R., and other related laws related to revenue policy.
(d) Activities related to stamp duty, income tax, travel tax, gift tax, wealth tax, customs duty, value-added tax (VAT), supplementary duty, excise duty, surcharge, and other customs duties, fee imposition, reduction, increase, and exemption.
(e) Rapid implementation of integrated automation activities with the Revenue Management Division and related organizations.
(f) Monitoring the implementation of tax laws and tax collection situations.
(g) Coordination with the Revenue Management Division on the implementation of customs and tax policies.
(h) Execution of international agreements related to customs and providing opinions.
(i) Activities related to international double taxation avoidance agreements.
(j) Analysing the global and local context and statistics related to revenue and conducting research activities related to tax policy.
(k) Analysing and researching revenue data to make appropriate forecasts and estimates of revenue income.
(l) To undertake and implement necessary projects to increase the efficiency, effectiveness, and dynamism of revenue policy activities and to ensure transparency and accountability.
(m) Perform any other duties assigned by the Government.
As per the draft law, the government shall, by official notification, constitute an advisory committee consisting of economists, revenue experts, legal experts, accounting and audit experts, representatives of business organisations and professionals, the Tariff Commission, and the concerned ministries or departments, for the purpose of providing regular advice to the Revenue Policy Division in formulating revenue policy.
The terms of reference and term of office of the committee shall be determined by the Government.