Businesses alarmed as NBR stalemate deepens

Highlights:

• 'Peaceful march to NBR' today
• 'Complete shutdown' to continue from today
• Top business leaders to hold a press conference today
• Finance ministry schedules meeting on 1 July with NBR Reform Unity Parishad leadership

The deadlock at the National Board of Revenue (NBR) shows no sign of resolution, as neither the finance ministry nor protesting officials have budged from their positions. 

With no signs of compromise, top business leaders have expressed growing alarm over the potential impact on trade and are planning a press conference today to demand immediate action and compensation for any losses incurred due to the standoff.

The standoff deepened yesterday when the finance ministry, NBR and NBR Reform Unity Parishad in separate press releases stood their own grounds, indicating no compromise.

The press releases from the finance ministry, and the NBR, directed all NBR officials to remain at their respective workstations, as the Unity Parishad had earlier announced to gather at NBR headquarters in Dhaka today.

The NBR press release warned officials that those absent from the workplace without permission might face disciplinary action in accordance with government regulations.

NBR Reform Unity, on the other hand, said in their press release circulated last night that they will continue their complete shutdown in all offices of the Tax, Customs, and VAT departments from today, and a 'peaceful march to NBR' programme will be observed from above mentioned offices.

Behind the scenes, efforts to mediate continue, but till filing this report last night, no breakthrough was reached. From today, ports are expected to grind to a halt. While Saturdays are typically public holidays and VAT and tax offices remain closed, partial port operations continue to support exports and the import of essential goods. 

However, since today marks the last Saturday of the current fiscal year, offices were supposed to remain open– an earlier decision meant to ensure smooth operations. But due to the complete shutdown, these activities will now be suspended.

Anwar-Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, told The Business Standard, "We will hold a press conference on Saturday afternoon to call for an immediate resolution. The commerce adviser should have been involved in discussions aimed at resolving this crisis."

Speaking on condition of anonymity, the head of a leading business association told TBS, "We will demand compensation for the losses our members are incurring due to this movement."

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told TBS, "If imports and exports are affected by the NBR deadlock, it will only increase financial stress. We urge the government to resolve this crisis immediately. Both sides must avoid reaching a point of no return and find a middle ground."

Ehsan also said that business leaders will hold a press conference today at the InterContinental Hotel.

Another business leader, speaking anonymously, added, "The fact that this deadlock has continued for so long suggests it is unlikely to be resolved under the current finance adviser."

Finance ministry urges withdrawal of shutdown and march

A press release handed out by the finance ministry yesterday stated that a discussion meeting was held at the office of the finance adviser on 26 June, which was attended by the finance secretary, secretary of the Financial Institutions Division, the chairman of NBR, and its 16 Members.

Chaired by the finance adviser, the meeting came up with three decisions: withdrawal of the complete shutdown and the march to NBR programmes declared by the NBR Reform Unity Parishad; review of two recent transfer orders issued by the NBR regarding certain officers; and holding a follow-up meeting on 1 July with the leadership of the NBR Reform Unity Parishad.

NBR Reform Unity Parishad, however, rejected the decisions as they claimed none of their members were invited to the meeting.