Govt dissolves NBR, forms 2 new divisions

Bangladesh’s interim government has promulgated an ordinance dissolving the National Board of Revenue (NBR) and replacing it with two new divisions under the Ministry of Finance.

The ordinance was issued late Monday night, approved by President Mohammed Sahabuddin and signed by Law Secretary Hafiz Ahmed Chowdhury. The two new entities are the Revenue Policy Division and the Revenue Administration Division.

The move aims to modernize the country’s tax administration and boost revenue collection, in line with a key International Monetary Fund (IMF) requirement to separate tax policy from its administration.

On April 17, the Advisory Council approved the draft of the Revenue Policy and Revenue Management Ordinance, 2025.

Since then, officials and staff from all levels of the NBR—including the Income Tax and Customs departments—have staged protests, demanding the ordinance’s withdrawal. Employee associations submitted seven major recommendations opposing the reforms.

Under the new structure, the Revenue Policy Division will handle tax law formulation, rate setting, and international tax treaties. The Revenue Administration Division will oversee law enforcement, audits, and compliance for income tax, VAT, and customs.

In protest, a coalition named the NBR Reform Unity Council was formed on Monday, comprising BCS Income Tax and Customs cadre officers, non-cadre officials, and third- and fourth-grade employees. The group held a nearly nine-hour meeting and announced a sit-in demonstration for Tuesday.