Govt backtracks for now on implementing NBR split

Highlights

• NBR to function as before
• Customs and income tax cadre officials to conduct activities under existing system
• Now possible to implement ordinance without completing initial time-consuming tasks
• Necessary amendments after discussions with NBR, all important stakeholders 
• Govt clarifies it has no plans to reduce positions or ranks of Customs and Tax cadres
• Protesting officials want repeal of ordinance, chairman's removal, release of reform committee recommendations

The finance ministry has decided to amend the NBR split ordinance keeping the concerns of protesting official in mind and due to the time-consuming tasks involved in implementing the relevant ordinance. 

This is a quick backtrack from their earlier decision. 

In a press release issued today (22 May), signed by the Relations Officer of the Ministry of Finance Gazi Touhidul Islam, it said the NBR will function as before until the "Revenue Policy and Revenue Management (2025)" ordinance is amended.  

"Since the implementation of the ordinance requires necessary amendments and is a time-consuming process, all activities of the National Board of Revenue will continue as before, and the officials and employees of the Customs and Income Tax cadres will carry out all operations under the existing system," it reads.

"The administrative framework for the separation of the BCS (Tax) and BCS (Customs & Excise) cadres will be formulated while preserving their interests. Necessary amendments to the ordinance will be made through discussions with the National Board of Revenue and all key stakeholders," it adds, addressing a key concern of the protesting NBR employees.

The customs and income tax cadre officials will conduct all activities under the existing system, the release added.

Furthermore, the press release clarified that the government has no plans to reduce the positions or ranks of members of the Customs and Tax cadres. "On the contrary, once the reform work is completed, the number of positions will increase, and opportunities for promotion, including appointments to secretary positions, will expand significantly."

After issuing the ordinance, many tasks were yet to be implemented, including formulating a new organisational structure of two newly-formed departments. 

In addition, changes were also needed to the "Allocation of Business" for the two new departments and the Income Tax Act, Customs Act, Value Added Act and the rules and regulations related to these laws. 

"In the larger interest of the state, at the end of the fiscal year, officers and employees of the National Board of Revenue engaged in national budget activities and revenue collection at all levels are requested to be present in the office during office hours, perform their respective responsibilities with dedication, and accelerate the country's economic activities by keeping revenue collection activities going and providing desired services to the respected taxpayers," the ministry said. 

NBR officials welcome move but says demands not met

Speaking to The Business Standard about the development, protesting NBR officials welcomed the ministry's move, but said their demands were not met.

A member of the NBR Reform Unity Parishad, a coalition of customs and tax cadre officers that has been leading the protest by NBR employees, said the Ministry of Finance's statement does not indicate that the demands of the protesting officials have been accepted.

An additional commissioner, speaking to TBS on condition of anonymity, said, "The statement that necessary amendments will be made to the ordinance through discussions with stakeholders to formulate the administrative framework for the separation while preserving the interests of the NBR cadre is positive."

"However, there has been no clear statement on who will lead the two separate divisions. Nor has there been any mention of suspending or canceling the ordinance. As a result, it cannot be said that they have accepted our demands," he added.

What are the demands submitted to CA

Earlier in the day, a delegation of NBR officials, under the banner of the NBR Reform Unity Parishad, submitted a memorandum to the chief adviser today (22 May) demanding the repeal of the recently passed ordinance that separates NBR's policy and management functions.

The memorandum, handed over to Shabbir Ahmad, assistant private secretary to the chief adviser, by a five-member delegation including Additional Commissioners Sehela Siddiqua and Hasan Mohammad Tarek Rikabder,

They also called for the removal of the NBR chairman, the public release of the revenue reform committee's recommendations, and a comprehensive review of the reforms in consultation with stakeholders, including businesses, civil society, and political leaders.

Speaking on condition of anonymity, a member of the delegation told TBS that the memorandum further urged direct engagement with the chief adviser to convey the concerns and aspirations of NBR's younger officers.

The officials stated that despite a meeting with the finance adviser and members of the advisory council earlier this week, their concerns remain unresolved.

"Listen to the vision of young NBR officers for Bangladesh's future revenue structure. We want reforms modelled on internationally recognised best practices," the memorandum reads.

It also raises concerns about the newly created Revenue Policy Division and Revenue Management Division under the Ministry of Finance, claiming that the ordinance strategically empowers the policy division to dominate management operations — undermining the spirit of institutional separation.

The reform council alleged that the ordinance is a tactical move to bring both divisions under the control of the administration cadre, effectively sidelining NBR's established customs and tax officials.

Meanwhile, following their announced continuous non-cooperation movement from the previous day, officials and staff of the customs, VAT, and tax departments held a day-long sit-in at the NBR headquarters in Agargaon today.

The agitating officials also declared a full-scale work stoppage – excluding customs houses and land customs stations – across all tax, customs, and VAT offices starting 24 May.

If their demands are not met by then, they warned of a complete halt to all NBR activities except international passenger services starting 26 May.

For the past week, the protesting officials have been observing five-hour daily pen-down strikes.

*Correction: We had earlier used the headline "Finance ministry withdraws NBR split decision amid protests by officials". The decision hasn't been withdrawn, but the ordinance over it will be amended and it will also need time to implement. We have corrected the headline accordingly, while adding that this is a change from earlier direction.