NBR to frame ethics code to help build trust

The National Board of Revenue (NBR) is set to introduce a formal code of ethics and professional conduct by September 2025, fulfilling a key condition of the International Monetary Fund (IMF) under its ongoing $4.7 billion loan programme.

In a significant move toward improving transparency and governance, officials and experts say, the new code is expected to define clear behavioural standards, reduce corruption, and restore public trust in the country's revenue administration. The code, currently under review, would also set standards for accessing taxpayer information, interacting through digital platforms, and maintaining ethical conduct within the tax authority.

While its development has coincided with recent unrest in the revenue sector, NBR insiders clarify that the initiative actually began in 2024, led by a six-member committee.

The move is being hailed by economists and tax professionals as a long-overdue step toward institutional reform and professionalism in one of the country's most important public bodies.

Meeting this structural benchmark (SB) is also critical to unlocking the next IMF loan tranches totalling $1.16 billion.

An IMF mission is scheduled to visit Bangladesh to provide technical support in finalising the code and assessing whether the condition has been adequately met. Government insiders said the separate codes of ethics and professional conduct for NBR may help check much-alleged corruption in revenue administration and contribute to rebuilding the tax authority's image.

The code is set to define behavioural guidelines for tax officials, determine access to taxpayers' information, and regulate digital interface practices within tax administration.

NBR Chairman Abdur Rahman Khan confirmed that the first draft has been prepared and is currently under review by senior authorities.

Officials said they expect the drafting process to be completed by August 2025.

Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), welcomed the move, calling it timely. However, he emphasised the need to link the code with broader institutional capacity-building efforts.

"It must not dampen the working spirit or demotivate revenue officials," he cautioned, urging focus on much-needed administrative reforms.

Referring to the recent countrywide protests, work stoppages, and pen-down strikes, the economist noted that such a professional code of conduct could help ensure better taxpayer services.

However, not all officials are on board with the idea of a standalone code for the NBR. A senior field-level tax officer said, "All government officials are already bound by service rules that define professional conduct. We don't understand why a separate code is needed for NBR."

That said, he acknowledged the need to harmonise the proposed code with existing service rules to avoid any discrimination between NBR and other government departments.

NBR officials, on their part, insist that the new code would not conflict with existing rules but rather define a standard for behaviour currently lacking in the revenue service.

According to sources close to the development, IMF experts will help assess whether the new benchmark has been met as per international standards. A code of ethics is already common practice among revenue authorities worldwide and is considered best practice.

Chartered Accountant Snehasish Barua, Director at SMAC Advisory Services Ltd, noted that such a code is essential for promoting transparency, accountability, and fairness within the revenue system. "It improves operational efficiency, reduces misconduct, and builds public trust, ultimately contributing to greater economic stability," he said.

Typically, a revenue department's code outlines ethical expectations such as integrity, impartiality, and accountability. It also aims to ensure the fair application of tax laws, protect taxpayers' rights, and maintain the administration's credibility.

The Mauritius revenue authority's code emphasises impartiality, confidentiality, and professionalism. The East and Southern Africa revenue administration's code stresses integrity and ethical culture, while the Philippines' Code of Conduct and Ethical Standards calls for public officials, including revenue officials, to be accountable and act with integrity.

Economists believe a similar framework in Bangladesh would enhance public trust and ensure the NBR operates effectively and fairly.

Referring to the World Customs Organization's Integrity Development Guide, a World Bank study titled "Codes of Ethics and Conduct in Revenue Administration: What Does International Practice Tell Us" recommends that such codes be developed in consultation with stakeholders, including other government agencies and staff at all levels.

"This comprehensive participation is also recommended by the Ethics Resource Council as being a key to successful code implementation," the study notes. "Such engagement could be one of the most important contributors to the long-term success of ethics and conduct codes."

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