The interim government has directed the National Board of Revenue (NBR) to submit written reform proposals within two weeks, focusing on the Rules of Business, the Allocation of Business, and the organogram, as part of efforts to overhaul the revenue administration for greater efficiency and inclusivity.

The instruction was issued during a high-level meeting at the secretariat, chaired by Power, Energy, and Mineral Resources Adviser Muhammad Fouzul Kabir Khan. Four of the five government-appointed advisers to the revenue reform initiative were present, with one absent due to trade negotiations in Washington.

Officials made it clear that the NBR’s future structure and operations must reflect the wider interests of Bangladesh’s industrial, trade, and business communities, rather than the preferences of revenue officials alone. The advisers emphasised inclusivity, flexibility, and responsiveness to evolving needs as guiding principles for the reform process.

Senior NBR officials and representatives from the BCS Taxation Association and the BCS Customs Association attended the meeting.

Fouzul outlined three major challenges facing the NBR: the significant gap between potential and actual revenue collection, recurring shortfalls in meeting annual targets, and rising taxpayer dissatisfaction leading to a crisis of public trust.

Adviser Brigadier General (retd) M Sakhawat Hossain strongly criticised the protest tactics recently employed by revenue officials, linking them to service disruptions at Chattogram Port and staff suspensions. He warned against using strikes, office closures, and service boycotts as negotiation tools.

Fouzul further cautioned officials against rigid stances, stressing that power ultimately resides with the people. He cited the example of administrative cadre officers who withdrew protest programmes once talks began, describing this as a “mature” approach.

Revenue officials were reminded that while the government is open to fair demands, unilateral actions could undermine the reform process.

During the meeting, Barrister Mutasim Billah Faruqui, member (taxes – legal and enforcement), reiterated the revenue cadre’s longstanding demand to elevate the NBR to a division and ensure senior posts are filled by tax and customs cadre officers.

He welcomed the initial proposal to separate the NBR’s policy and implementation functions but expressed concern that later drafts of the ordinance diluted these objectives, particularly by allowing appointments from the administrative cadre to key leadership roles.

Faruqui said recent meetings with the finance adviser had been productive, with commitments made to balance appointments between the administrative and revenue cadres, improve promotion pathways, and upgrade senior posts to grade-1 level. He stressed the need to implement the Ministry of Finance’s May 25 press note and formalise reforms through changes in the relevant rules and ordinances.

Despite assurances, Faruqui acknowledged ongoing unrest within the revenue service and called for continued dialogue to address uncertainty among officers.

Jafar Imam, the first secretary at the NBR, highlighted the country’s untapped tax potential, noting that Bangladesh could generate up to Tk 6 trillion annually from income tax alone. Currently, revenue from income tax stands at just Tk 1.75 trillion, reflecting a 70 percent shortfall.