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THURSDAY, JUNE 12, 2025
Govt looks for ways to resolve NBR deadlock

Economy

Reyad Hossain
18 May, 2025, 12:00 am
Last modified: 18 May, 2025, 12:00 am

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Govt looks for ways to resolve NBR deadlock

Experts believe implementing the reform committee’s recommendations is the only way forward

Reyad Hossain
18 May, 2025, 12:00 am
Last modified: 18 May, 2025, 12:00 am
Employees of the now-dissolved NBR hold a protest programme in front of the revenue board's HQ on 13 May. Photo: Jahir Rayhan/TBS
Employees of the now-dissolved NBR hold a protest programme in front of the revenue board's HQ on 13 May. Photo: Jahir Rayhan/TBS

The government is searching for a solution to the ongoing deadlock created by the nationwide pen-down strike of National Board of Revenue (NBR) officials protesting the dissolution of the NBR and the perceived disregard for the reform committee's recommendations.

Senior government officials, including the NBR chairman, have held discussions with the chief adviser on this issue. Sources say the chief adviser may soon convene a meeting with all parties concerned to resolve the crisis.

Meanwhile, protesting officials have also indicated they are "open to discussion" and have sought the chief adviser's directives on the matter.

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A senior NBR official, speaking on condition of anonymity, told TBS, "The NBR chairman, appointed from the administration cadre, held a meeting with the NBR members on Saturday morning. Most of the members urged him to seek a positive resolution to the issue."

Another senior official involved in the protest said, "We are hearing indications of a meeting with the chief adviser. We hope that will happen within a day or two."

A secretary-level official told TBS, "We want to resolve the issue. But the protesters are still standing firm."

Meanwhile, Transparency International Bangladesh (TIB) issued a statement warning that the hurriedly issued ordinance poses a risk of placing the revenue system under executive control. TIB called for the ordinance to be suspended.

Experts point out that the lack of transparency in the reform committee's report on splitting the NBR and the one-sided nature of the ordinance have led to widespread suspicion.

Farid Uddin, a member of the NBR reform committee, told TBS, "The recommendation made in our report is the only way to resolve this crisis. I see no alternative."

Sources familiar with the matter say the recommendation was to replace the NBR with two divisions: a Revenue Policy Division and a Revenue Management Division. One of the key recommendations was that both divisions be headed by officials of secretary rank selected from the tax and customs cadres, guided by a specific set of rules.

However, the ordinance states that the head of the policy division can be "any suitably qualified government official," and the head of management should "preferably" be someone with "experience in revenue-related work."

Interviews with tax and customs officials reveal that this vagueness is a major point of contention – they believe it opens the door for influential administration cadre officials to take over key posts.

Furthermore, unlike other reform committee reports that were made public, the NBR reform committee's recommendations were not disclosed, and the ordinance was issued hastily late at night, deepening mistrust among officials.

A press release from the NBR Reform Unity Parishad stated, "Through deliberate and adverse amendments in the ordinance, national interests have been undermined in favour of influential groups. The organisational autonomy and professional identity of the NBR have been disregarded, putting revenue collection at risk."

Farid Uddin added, "The process for appointing division heads remains vague. This has left the door open for administration cadre officers to replace qualified and skilled tax and customs officers."

"While leadership appointment represents just 5% of the reform process, if that 5% is mishandled, the remaining 95% cannot be properly implemented," he noted.

Md Aminur Rahman, another committee member, believes that there may be multiple solutions and that being rigid on one point is not necessary.

Syed Md Aminul Karim, a former NBR member, told TBS, "It makes sense for NBR officials to head both proposed divisions. Without a revenue background, others cannot effectively formulate policy."

He added that although it is being said that the NBR failed to meet expectations over the past five decades, one key reason is that its chiefs were often appointed from outside, mostly from the administration cadre.

Karim continued, "The ordinance as it stands now implies that NBR officers will do the policy work but only as assistants, while the current members' grade and position remain unclear."

He also criticised placing the appellate tribunal and several other key units under the policy division, saying it was not a logical move.

What could be the solution?

An NBR official speaking anonymously mentioned a possible idea being discussed: to leave the head post of the policy division open to administration and others, as stipulated in the ordinance, while ensuring the head of the management division is appointed from within the NBR.

 "There is a concern among administration cadre officials that if this movement within the NBR succeeds, other departments may also demand similar changes, potentially limiting their positions in those areas," he added.

The official noted that having an NBR chief from within the NBR would not be unprecedented, citing that heads of the Foreign and Legislative cadres are always selected from their own services.

"So, while we are open to dialogue, we want a rational solution," he said.

Protesters seek chief adviser's guidance, warn of stricter movement

NBR staff at all customs houses, VAT and tax offices observed a five-hour pen-down strike yesterday. They announced that the strike would be extended to six hours starting today.

At a press conference held yesterday at the NBR headquarters in Agargaon, Dhaka, Nipun Chakma, joint commissioner of customs, said, "We are waiting for the government to engage in dialogue with us, under the guidance of the honourable chief adviser."

Md Asaduzzaman, also a joint commissioner, added, "We want the NBR Reform Committee's recommendations to be published. We support reform, but it must be realistic, inclusive of stakeholder opinions, and must fully recognise the skills and experience of NBR officers and staff."

A senior NBR officer warned, under condition of anonymity, "If our demands are not met, we will be forced to escalate our movement."

Currently, services such as international passenger handling, import-export, and budget formulation remain outside the purview of the strike.

Meanwhile, almost all members, including the president of the BCS Customs Association, have resigned following mass resignations due to the failure to protect the interests of the members. On the other hand, the activities of the BCS Taxation Association have been suspended as per a statement issued yesterday.

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