NBR Split to Finalize by Year-End: Official Statement

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Government's Commitment to NBR Separation by December

The government has expressed its firm determination to fully implement the separation of the National Board of Revenue (NBR) by December this year, according to a senior official from the Finance Ministry. The official, who wished to remain anonymous due to restrictions on speaking to the media, emphasized that the process is already underway and will be completed in a full-fledged manner.

He mentioned that some amendments are expected to be made to the ordinance before the final implementation. A committee has been formed to handle the negotiations and is expected to submit its report soon. Once the report is received, the necessary changes will be introduced.

On June 29, the government established a five-member adviser-level committee to address the ongoing issues surrounding the separation of the NBR. The committee, led by Energy Adviser Fouzul Kabir Khan, includes other members such as Housing and Public Works Adviser Adilur Rahman Khan, Labour and Employment Adviser Brigadier General (Retd) M Sakhawat Hussain, Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan, and Commerce Adviser Sk Bashir Uddin.

The committee has already met with NBR officials who had staged protests since May 13 and representatives from the business community. These meetings aim to resolve the disputes and facilitate the implementation of the new structure. The official noted that after the committee’s report is submitted, the government will proceed with the required amendments.

Under the new structure, there will be two divisions under the finance ministry: the Revenue Policy Division and the Revenue Management Division. Each division will have its own secretary, ensuring both are powerful and independent.

Protests and Reactions from NBR Officials

The officials and employees of the NBR, under the banner of the NBR Reform Unity Council, initiated protests after the government issued an ordinance on May 12. This ordinance dissolved the NBR and the Internal Resources Division, replacing them with the two new divisions. The move led to widespread disruptions, including complete shutdowns, marches, work abstentions, hunger strikes, and human chains across tax, VAT, and customs offices nationwide.

The NBR Reform Unity Council organized various protest programs, demanding structural reforms and the removal of the NBR chairman. They cited allegations of administrative irregularities, officer intimidation, and obstruction of pro-reform efforts. On June 29, the council called off their complete shutdown program following fruitful negotiations with business leaders.

However, tensions continued as some top NBR officials were sent into forced retirement, while others were investigated by the Anti-Corruption Commission (ACC) for alleged involvement in the movement. The ACC launched a probe against eleven senior NBR officials for corruption, abuse of power, and nepotism over the past two decades.

Among those under investigation is Hasan Tarek, president of the NBR Reform Unity Council, along with several others who participated in the movement. Additionally, three top NBR officials were sent into early retirement for the sake of public interest. These include Hossain Ahmed, Md Alamgir Hossain, and Md Abdur Rouf. Other officials, such as Md Sobbir Ahmed and M Moinul Erfan, were also retired early.

The NBR has also suspended Commissioner (in-charge) of Chattogram Custom House Md Zakir Hossain for allegedly disobeying official instructions, which resulted in disruptions of trade activities and significant revenue losses.

Despite these challenges, the Finance Adviser Salehuddin Ahmed urged NBR officials to resume their work "without fear and favour," while NBR Chairman Md Abdur Rahman Khan called for all to focus on working for the country and forgetting past disputes.