NBR staff call off protest after government backs down on abolishing it

The protesting staff and officials of the National Board of Revenue (NBR) suspended their shutdown programme on Sunday, following a clarification issued by the Ministry of Finance (MoF) confirming that the agency will not be dissolved.

The clarification, titled "Clarification from the Government Regarding the Implementation of the Revenue Policy and Management Ordinance, 2025", stated that the NBR will be elevated to the status of an independent and specialised division under the Ministry of Finance.

It further noted that, while safeguarding the interests of the BCS (Customs & Excise) and BCS (Taxation) cadres, the government would finalise the framework for separating revenue policy formulation and strengthening the NBR as a specialised institution through consultations with the NBR, the Revenue Reform Advisory Committee, and other key stakeholders.

To this end, the necessary amendments to the ordinance will be made by July 31 2025, and the ordinance will not be implemented until those amendments are enacted.

Following the announcement, one protesting official said the statement addressed their primary concerns, prompting them to call off the demonstrations.

However, a separate statement from the NBR Reform Oikka Parishad said their demand for the resignation of the NBR chairman has not been met, and that their non-cooperation movement against him would continue.

On May 22 2025, the MoF had issued an earlier press note clarifying the government's position on various demands raised by the NBR Reform Unity Council in connection with the Revenue Policy and Management Ordinance, 2025.

“The government had hoped that this explanation would address all concerns of the National Board of Revenue’s tax, customs, and VAT services regarding the ordinance,” the MoF statement said.

Nevertheless, a recent press release from the NBR Reform Unity Council suggested that some ambiguities remain. In response, the government issued additional clarifications, expressing hope that the latest statement will resolve all outstanding concerns and that all revenue collection and service delivery offices will promptly resume full operations with renewed dedication.

Speaking to The Financial Express on Sunday, Finance Adviser Dr Salehuddin Ahmed said there had been a misunderstanding between the MoF and the NBR, which would soon be resolved.

“NBR officials are concerned about the involvement of Administration cadre officials,” he said. “But I understand that tax policy formulation requires specialisation.”

He emphasised the need to automate and reform the revenue board to improve Bangladesh’s tax-to-GDP ratio, currently at only 7.9 per cent. He also acknowledged that the existing system allows scope for corruption.

“NBR is not like other entities such as the BRTA. All land, sea, and airports are affected by its operations,” he added. “Revenue collection peaks in May and June — and that has now taken a hit.”

He noted that the government is reportedly losing Tk 30 to Tk 40 billion per day due to the ongoing protests.

“The NBR will be reconstituted, not dissolved. If preferred, the name ‘NBR’ may be retained,” he said.

Currently, the NBR does not have a secretary. After the ordinance is enacted, it will have two full secretaries, he added.

“No posts at the NBR will be cut; rather, the new policy department will receive 150 to 200 officials,” he confirmed.

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