Reform proposals sought from NBR officials in 2 weeks

The interim government has instructed officials of the National Board of Revenue (NBR) to submit written proposals within two weeks, outlining specific amendments they wish to see in the Rules of Business, the Allocation of Business, and the organogram.

This directive is part of the ongoing efforts to reform the country's revenue administration for greater efficiency and inclusivity.

It came at a high-level meeting held in the office of Power, Energy, and Mineral Resources Adviser Muhammad Fouzul Kabir Khan at the secretariat on Thursday.

Four of the five government-appointed advisory committee members were present there. The one who was absent is in Washington for trade discussions.

During the meeting, the advisers made it clear that the future structure and functioning of the NBR would not be determined solely by its internal officials. Rather, it must take into account the broader interests of the country's industrial, trade, and business communities.

The government reiterated its commitment to inclusive development, warning against the isolation of any single institution or stakeholder. Flexibility and adaptability to change were emphasised as key principles guiding the reform process.

Senior NBR officials, as well as members of the BCS Taxation Association and the BCS Customs Association also participated in the closed-door meeting.

Adviser Fouzul highlighted three core challenges facing the NBR - the significant gap between potential and actual revenue collection, repeated failures to meet annual targets, and growing dissatisfaction among taxpayers, resulting in a crisis of public perception.

Brigadier General (retd) M Sakhawat Hossain, also an adviser, expressed strong disapproval for the methods of protests adopted by NBR officials.

He blamed the recent disruptions at the Chattogram Port, along with job suspensions, on these protests.

Moreover, he stressed that actions like office closures or withholding services are unacceptable.

Fouzul reminded officials that power ultimately lies with the people, not with individuals or positions.

He cited administrative cadre officials as an example of professionalism, noting that they withdrew their protest programmes once dialogue began - a move he called "mature and intelligent."

Moreover, he stated that while the government is open to fair demands, rigid or non-negotiable positions are counterproductive.

The adviser instructed NBR officials to submit written reform proposals related to the Rules of Business, Allocation of Business, and the organogram within two weeks.

Barrister Mutasim Billah Faruqui, member (taxes - legal and enforcement), said the BCS taxation and customs associations initially welcomed the idea of separating the NBR's policy and implementation functions, hoping it would serve the national interests.

However, he argued that subsequent revisions to the draft ordinance presented before the advisory committee compromised the interests of the revenue cadre and national goals.

He raised concerns about the erosion of institutional traditions, citing the replacement of internal appointments for the NBR chairperson with appointments from the administrative cadre, such as the IT secretary.

Faruqui also criticised the inclusion of administrative cadre officers in key board positions.

He reaffirmed the association's long-standing demand to elevate the NBR to a divisional entity and ensure that senior posts are filled by tax and customs cadre officers.

Besides, he described the recent meetings with the finance adviser as successful, saying that commitments were made to appoint officials from both cadres to top policy roles, improve promotion tracks, and upgrade positions from grades 2 and 3 to 1.

These reforms would be formalised through amendments to the ordinance, he said.

Despite the assurances, Faruqui acknowledged that uncertainty and unrest remain within the revenue service and stressed the need for continued dialogue.

He also called for full implementation of the Ministry of Finance's press note dated May 25, noting that necessary amendments to the Rules of Business, Allocation of Business, and the ordinance would help ease fears among junior and senior officers alike.

Jafar Imam, first secretary at NBR, said based on Bangladesh's economic capacity, up to Tk 6 trillion could be collected annually from income tax alone.

Currently, the figure stands at only around Tk 1.75 trillion - indicating a 70 per cent shortfall, he said.

He urged the government to enhance support, infrastructure, and incentives for revenue collection.

Md Abdur Rakib, commissioner of the Income Tax Intelligence and Investigation Unit, called for improvements in infrastructure, logistics, and institutional capacity.

He emphasised that an environment rooted in integrity and fairness would significantly reduce corruption and harassment.

Joint Commissioner Monalisa Shahreen Sushmita criticised the May 12 ordinance, particularly the adoption of a "division model" based on the secretariat norms.

She argued that this model does not adequately represent revenue cadres, adding that international best practices advocate for revenue bodies to function as enforcement agencies, not under bureaucratic control.

Also, she highlighted a trust deficit among officers, many of whom fear losing their domain of work and career growth.

Referring to recommendations in a previously submitted white paper, she insisted that technically skilled professionals should lead the revenue departments after the reform.

Commissioner and Secretary General of the BCS Taxation Association Sayed Mohidul Hasan echoed the call for a comprehensive reform package.

He proposed appointing tax and customs cadre officials to secretary-level positions in two divisions, revising Rule 4 and Section 9 of the Rules of Business, amending the 2002 Deputy Secretary Recruitment Rules, adopting a new organogram with 16 grade-1 member positions - eight from each cadre - and upgrading commissioner posts to grade 2.

Joint Commissioner Md Mesbah Uddin Khan expressed concern over job insecurity and possible Anti-Corruption Commission (ACC) investigations.

He warned that such pressures would undermine officials' motivation and capacity to deliver on national revenue goals.

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