NBR split certain, but ordinance flaws need fixing: Energy adviser

Energy Adviser Muhammad Fouzul Kabir Khan has said officials from both income tax and customs-VAT departments have agreed on dividing the National Board of Revenue (NBR) into two separate entities.

At a press conference today, he also said the Advisory Committee on Further Streamlining Business, Trade, Industry, Ports, and Revenue Collection Activities will recommend amending the ordinance that was issued to split the NBR.

"The committee will recommend correcting the flaws in the ordinance, but there will be no more NBR. People only smirk when they hear of the NBR. It's better that NBR is not there," he added.

The advisory committee, formed on 29 June, comprises five government advisers and is chaired by Fouzul Kabir.

He added, "It will be recommended to formulate policies for the appointment of secretaries and senior officials for the two new divisions, and to determine what kind of qualified officers will be appointed.

"However, the demand of NBR officials – that only officers from their two cadres [Customs and Income Tax] be appointed – will not be met. At the same time, it will be ensured that there is no interference from the administration cadre here."

The adviser noted that the committee has so far held five meetings, with associations of income tax and customs-VAT officials, the NBR itself, the NBR Reform Commission, and business representatives.

He said the committee would now visit field-level offices to inspect income tax and customs-VAT activities.

Fouzul Kabir said while officials from income tax and customs-VAT departments expressed support for the split, they insisted that only officers from their respective cadres be appointed to the two new entities.

Business representatives, on the other hand, reported that they had suffered considerable economic losses during the recent movement by NBR officials and alleged that harassment by customs and VAT officials continues. They expressed full support for the government's ongoing reform programme.

According to the adviser, the committee's analysis found that the conflict behind the NBR officials' movement stemmed from longstanding tensions between the BCS Administration Cadre and other cadres.

"We questioned why the issue escalated only after the ordinance was issued to divide the NBR, despite such tensions existing earlier," he said.

"That is when we realised the ordinance has some fundamental flaws. Clever language has been used. For example, it says that a person with appropriate qualifications can be appointed secretary. Section 7(3) mentions experience in revenue collection but does not clarify the type of revenue, whether it is land, passport, or something else. We will advise removing such ambiguities."

The adviser said the committee continues to receive reports of NBR staff deliberately slowing down their work. "We will visit field-level offices to verify these claims."

Referring to a report published in a national daily, he alleged that agitators had formed a WhatsApp group and taken an anti-government stance. "The Finance Division will be advised to investigate this," he said.