NBR dissolved, 2 new divisions created amid commotion of customs and tax officials

Highlights

• Customs and Income Tax officials strongly oppose the move, claiming it shifts control to the Administration cadre.

• The ordinance was passed with only minor changes, despite protests from revenue officials during the drafting stage.

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• NBR officials plan to protest the ordinance today (13 May), warning of potential negative impacts on future revenue collection.

President Shahabuddin has promulgated an ordinance abolishing the National Board of Revenue (NBR) and creating two separate entities — the Revenue Policy Division and the Revenue Management Division.

The ordinance was issued last night (12 May).

Officials from the Customs and Income Tax cadres of the NBR have expressed strong opposition to this ordinance. They believe that, instead of ensuring the independence of revenue policy and management, the ordinance effectively transfers the authority and power of the NBR to officials of the Administration cadre.

Customs and tax officials have been protesting the ordinance since its draft stage. However, the government has issued it without making any significant changes to the original draft.

The only amendment made in the ordinance is a slight modification in the scope of work for the Revenue Policy Division.

A review of the draft ordinance shows that the Revenue Policy Division will oversee the enforcement of tax laws and evaluate the state of tax collection.

Income tax officials demand cancellation of draft ordinance for revenue reforms

The Revenue Management Division will do the main work of revenue collection.

Meanwhile, various administrative posts in the Revenue Management Division will be filled by Admin cadre officers and field-level employees of the Revenue Management Division.

According to the law, the government will be able to appoint any suitably qualified government officer to the post of secretary or senior secretary of the new revenue policy and management divisions.

Even the Customs, Excise and Value Added Tax Appellate Tribunal and the Income Tax Appellate Tribunal will be attached to the departments of this Revenue Policy Division under the Finance Ministry.

The proposed law mentioned that it is appropriate and necessary to establish a Revenue Policy Division and a Revenue Management Division by restructuring the existing structure to increase transparency, accountability, and dynamism of revenue collection activities.

NBR officials call for protest

Meanwhile, Revenue Board officials have disclosed plans to stage a protest today (13 May), opposing the ordinance, which they say was issued while ignoring the opinions of Customs and Income Tax officers.

An NBR official, speaking to The Business Standard on condition of anonymity, said that the two associations will meet today to decide their next course of action.

Over the past few days, these officials have tried to bring their concerns to the attention of policymakers, including the finance adviser, but no effective solution has been offered.

This has led to heightened anger among the officials of the customs and tax cadre, and there are concerns that revenue collection in the coming months of the current fiscal year and beyond may be adversely affected.