Is bifurcation of NBR stalling due to opposition from admin cadre?

After the much-discussed abolition of the National Board of Revenue (NBR) and its division into two entities, complications have emerged at the implementation stage. Ahead of the election, opposition from the administration cadre is causing the implementation to stall, sources said.

On 28 January, Tanvir Ahmed, a joint secretary of the Cabinet Division, sent a legal notice to seven secretaries challenging the legality of abolishing the NBR and forming two divisions. The notice also requested the annulment of the ordinances related to the Revenue Policy Division and the Revenue Management Division.

Sources say that a section of senior officials from the administration cadre has already met the finance adviser and requested that the decision to appoint new secretaries to the two divisions before the election be cancelled.

In this situation, multiple NBR sources say that at the final stage, the appointment of two secretaries to the two divisions and other related activities are effectively being put on hold during the tenure of this government. As a result, doubts have arisen as to whether the initiative will see the light of day after the election on 12 February, once a new government comes to power.

On 12 May 2025, the government issued an ordinance with a view to abolishing the NBR and forming two divisions — the Revenue Policy Division and the Revenue Management Division. When objections were raised by NBR officials, the government amended the move and issued a revised ordinance on 1 September last year, paving the way for at least one of the divisions' secretary posts to be accessible to officials from the NBR's two cadres.

On 20 January, a meeting of the National Implementation Committee for Administrative Reorganisation (NICAR) also approved the structure, manpower and operating procedures of the two divisions. However, rules require that before placing such a proposal at a NICAR meeting, approval must first be obtained from the secretaries' meeting on administrative development. The finance ministry did not do so.

In this situation, multiple NBR sources have said that, at the final stage, the appointment of two secretaries to the two divisions and other related activities are effectively being left in limbo during the tenure of the current government. As a result, doubts have emerged over whether the initiative will see the light of day after the election, once a new government takes office.

Attempts were made to contact NBR Chairman and Internal Resources Division (IRD) Secretary Abdur Rahman Khan for comment, but he declined to speak.

Meanwhile, after the NBR was split into two, the organisation has begun a process of reinstating officials who were suspended for protesting on various demands, by imposing lighter punishments.

Speaking to TBS yesterday on condition of anonymity, an NBR member who had supported the government's decision to split the NBR said, "It is true that at this final moment there is no cooperation from the administration cadre. Without their cooperation, the chances of implementation are reduced anyway."

Stating that implementation of the two divisions is probably being delayed ahead of the election, he added, "If this had been done even one and a half to two months earlier, the current situation would not have arisen."

However, although two meetings were decided upon to finalise the matter, these were not held due to a lack of interest from administration cadre officials, sources said.

Another senior NBR official told TBS that he had heard discussions were underway to appoint the secretary of the Policy Division from among administration cadre officials and the secretary of the Management Division from among NBR officials.

However, the administration cadre is probably seeking to retain control over both secretary posts.

This is also reflected in the legal notice sent by Cabinet Division Joint Secretary Tanvir Ahmed.

The notice, sent on his behalf by Barrister Saleh Akram Somrat, stated that "the ordinance had unlawfully prejudiced his and other administration cadre's promotion rights, service conditions, structure and future career prospects by arbitrarily excluding them from consideration for appointment to the post of secretary."

The notice also sought the immediate repeal or withdrawal of the ordinance, and requested that the authorities restrain and refrain from appointing or taking any steps to appoint any secretary in the Revenue Policy Division or Revenue Administration Division, terming such actions as being 'pursuant to the impugned Ordinance'.

It further warned that legal action would be taken if steps were not taken within three days.

Suspended NBR officials being reinstated after punishment

According to an IRD order, Tax Cadre Additional Commissioner Sehela Siddiqua – who had been at the forefront of the protests by NBR officials – has been reinstated after a punishment involving the deduction of an amount equivalent to two basic salaries and a one-year suspension of promotion.

A senior official of the relevant NBR department told The Business Standard on condition of anonymity that a similar process of reinstating around 25 other officials with comparable punishments is also underway.

An IRD notification said that Sehela Siddiqua, through multiple WhatsApp messages, played an organising role in compelling on-duty officials to abandon their official responsibilities and come to the Revenue Building, which constitutes misconduct under the Government Servants (Conduct) Rules.

At the time, she was serving as the general secretary of the protesting officials' platform, the 'NBR Reform Unity Council'.

As the allegation was proven, her pay grade was reduced by two steps and the order of temporary suspension was withdrawn.

In the context of the protests, five top-level NBR officials were sent into forced retirement, and it is understood that they have no opportunity to return to service.