NBR strike cripples revenue collection, trade as deadlock persists

A prolonged pen-down strike by officials of the National Board of Revenue (NBR) across tax, VAT, and customs offices nationwide has severely impacted government revenue collection and disrupted business operations, particularly import and export activities. 

Following a meeting today (26 June), Finance Adviser Salehuddin Ahmed announced another meeting next week, aiming to finalise decisions to resolve the dispute. However, protesting officials did not attend this meeting, though a section of senior NBR members did.

A significant number of army personnel, police, and other law enforcement agency members were deployed at the NBR building today to prevent protesting officials from entering.

The industrial action, now in its second phase, has led to significant financial losses for the government and denied essential services to businesses and the public.

The ongoing unrest comes at a critical time, typically the end of the fiscal year, when revenue collection accelerates. However, the strike has caused a sharp deceleration in this crucial period.

Officials at Chattogram Customs House reported that customs clearance activities have almost ground to a halt, resulting in a drastic 80% drop in the assessment of import consignments. A four-day strike has also disrupted port container delivery operations. While some customs bond-related activities are being conducted for limited periods, exporters are not receiving full services. Similar disruptions are being experienced at VAT and income tax offices.

NBR Chairman Abdur Rahman Khan himself acknowledged the negative impact on revenue collection due to the officials' movement. He said as of 25 June of the outgoing 2024-25 fiscal year, revenue collection stood at Tk3.53 lakh crore.
 
Protesters' ultimatum

Protesters issued an ultimatum, threatening to cease all import-export related services from Saturday, if the NBR chairman is not removed by Friday and if any further punitive transfers are made. They also sought intervention from the chief adviser to resolve the current impasse.

With the finance adviser and NBR chairman apparently failing to break the deadlock, the government is now attempting to resolve the situation through Commerce Adviser Sk Bashir Uddin and a coordination of business leaders. 

A member of the Revenue Reform Committee, who wished to remain anonymous, told TBS, "The commerce adviser spoke with me and several business leaders today. We are trying to resolve the issue by Friday." 

He added, "We want to ensure that there is no shutdown or disruption to import-export activities under any circumstances." He also placed blame on both the finance adviser, the NBR chairman, and the protesters for the current situation, stating that officials responsible for resolving the crisis had failed to perform their duties correctly.

A senior protesting NBR official, speaking anonymously to TBS, said, "We want a solution through discussion. However, most officials demand that the chairman's removal will pave the way for a solution, as most of the problems were created by him."

Impact on business and revenue

Kazi Mahmud Imam Bilu, former secretary general of the Chittagong C&F Agents Association, pointed out the severity of the situation: "The last two working days of the week usually see the highest pressure for clearing goods. This strike has brought that process to a complete standstill."

Mahfuzul Haque Shah, former director of the Chattogram Chamber of Commerce and Industry, questioned, "The current business environment in the country is already fragile. This prolonged unrest by NBR officials is making things worse. Why hasn't the government stepped in? Are the officials more powerful than the state?" 

Mosharraf Hossain Bhuiyan, general secretary of the Chattogram Clearing and Forwarding Agents Employees Union, added, "For the last two days, no import goods have been assessed, and importers are pressuring us due to delays in delivery. Meanwhile, store rent charges at the port are piling up."

Chattogram Custom House spokesperson, Deputy Commissioner Saidul Islam, said officials have assured all pending work will be completed once the programme ends.

Revenue collection experienced a sharp decline in July 2024, the first month of the fiscal year, following the start of the mass uprising, which slowed economic activity. While collection saw some recovery from December, the officials' strike in May and June has again caused a slowdown. 

The current wave of protests began after an ordinance was issued around May, proposing the dissolution of the NBR and the formation of two separate divisions: the Revenue Policy Division and the Revenue Management Division. 

NBR officials at all levels launched a movement, alleging that the ordinance was a tactic to transfer control of both divisions to administration cadre officials. The movement subsided on May 23 after the finance ministry issued a press release clarifying that the NBR would not be dissolved. 

However, renewed anger among officials in recent days, sparked by "punitive" transfers of some involved in the previous movement, denial of rooms for meetings, and the exclusion of certain officials from the committee formed to amend the ordinance, led to the resumption of the strike on 23 June. 

Finance adviser's meeting

After a two-and-a-half-hour meeting at the Secretariat, Finance Adviser Salehuddin Ahmed said, "Revenue service is an essential service. I believe all parties will recognise that. I've called another meeting next week, where we aim to finalise decisions on this matter," he said 

Commenting on the NBR officials' protest programme scheduled for Saturday, the adviser said, "I've urged them to immediately withdraw it."