The government has dissolved the National Board of Revenue (NBR), splitting it into two distinct divisions under the Ministry of Finance to enhance efficiency, reduce conflicts of interest, and widen Bangladesh’s narrow tax base, the Chief Advisor’s Office said.

The move triggered immediate backlash from a section of NBR officials, who launched a pen-down protest against the restructuring.

According to the CA Office, the reform separates tax policy-making and administration—functions long housed under the NBR—into a Revenue Policy Division and a Revenue Management Division.

“Established over fifty years ago, the NBR has consistently failed to meet its revenue targets,” the statement said, citing Bangladesh’s low tax-to-GDP ratio of 7.4%, compared to a global average of 16.6%.

Critics have long argued that allowing the same body to both set and enforce tax policy has led to inefficiencies, irregularities, and weak governance. Businesses have complained of arbitrary policies favouring short-term revenue over fairness and growth.

The government outlined key failures of the NBR, including poor accountability, inefficient collection, and systemic irregularities. The statement claimed that officials often negotiate with defaulters and avoid penalising evasion.

The restructured framework aims to strengthen governance, broaden the tax base, reduce reliance on indirect taxes, and improve investor confidence through transparent and evidence-based policy.

Calling the reform a “necessary step,” the CA Office said it will help build a fairer, more effective tax system aligned with Bangladesh’s long-term development goals.