What finance adviser tells TBS about NBR split, BSEC chair removal
Salehuddin Ahmed has vowed to complete the full restructuring by December and also noted that while the organogram might take slightly longer, the policy division would be streamlined.
Despite ongoing protests from National Board of Revenue (NBR) officials against the splitting of the board and the secretary appointment, Finance Adviser Salehuddin Ahmed has made it unequivocally clear that there would be no compromise on the restructuring.
"There's a strike and protest at NBR. But we won't compromise. In 2008, NBR officials also tried to resist reform. Customs officials then blocked automation. Had we separated automation and management back then, the revenue situation would be much better today," he told The Business Standard in an interview on Monday (19 May).
Last week, the NBR was dissolved and replaced by two separate divisions: the Revenue Policy Division (RPD) and the Revenue Management Division (RMD).
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The finance adviser vowed to complete the full restructuring by December. He noted that while the organogram might take slightly longer, the policy division would be streamlined.
Dismissing the NBR officials' demand for a legal guarantee that the secretary must be from their cadre, he explained, "During vetting, the law ministry said the draft would not pass if cadre specificity was included for the secretary post. In practice, most NBR secretaries have come from the admin cadre.
"How many NBR secretaries have actually come from customs, VAT or income tax cadres?"
"NBR officials are demanding that both secretaries be from their cadre. That's not feasible," the adviser concluded on the matter.
Addressing capital market concerns and BSEC leadership
Acknowledging the volatility in the capital market, Salehuddin expressed his concern, defending the current BSEC chairman, Khondoker Rashed Maqsood. "Poor Maqsood is a very good banker, one of the best… he worked for Citibank, NA. Now, many people want me removed along with him because I split the NBR."
Responding to speculation about the BSEC chairman's potential resignation, the adviser questioned the alternatives. "Yes, if you remove him, who would you bring in? Someone like Shibli Rubaiyat, who handed over Tk3,000 crore to Salman F Rahman through ICB?
"He took all the money from Sukuk bonds and extracted thousands of crores from the capital market in various ways."
Looking ahead, Salehuddin affirmed the government's commitment to fostering a fairer business environment. "The upcoming budget will ensure a more open and fair playing field for business. Right now, a single person can own a bank, an industry, a university, and also be an MP. We want to end this trend.
"If business is spread more widely, ordinary people will also benefit."
He stressed a conditional prioritisation of the private sector. "The private sector will be prioritised, but with conditions. A fair playing field must be ensured, which has not happened before. Previously, only influential people benefited while good businesses were left behind.
"I've asked NBR to facilitate trade instead of imposing extra taxes and to remove business barriers."
Expressing alarm over the insurance sector, Salehuddin revealed, "Some companies have embezzled people's money. Their directors follow no rules. I've already discussed this with the IDRA Chairman. We will take steps soon."
