NBR expands customs and VAT unit with 12 new offices

The National Board of Revenue (NBR) has undertaken a major administrative reform and expansion of its Customs and Value Added Tax (VAT) unit, introducing 12 new commissionarates, Customs Houses, and specialised offices.

According to a press release issued on Wednesday, the Internal Resources Division (IRD) approved the restructuring through an order on Tuesday, following NBR’s proposal.

The NBR described the move as a “massive expansion” of the customs and VAT administration aimed at broadening the tax net and enhancing revenue collection capacity.

Under the reform, a total of 3,597 new posts will be created — including 373 cadre and 3,224 non-cadre positions — across the new commissionarates and specialised units. The existing offices will also see a boost in manpower and operational scope.

The revenue board said the expansion is intended to strengthen the indirect tax system, ensure a more business-friendly environment through better service delivery, and promote self-reliance in the national economy.

In line with NBR’s proposal, the IRD issued the order after securing approvals from the Ministry of Public Administration, Finance Division, and Cabinet Division.

The reform plan includes the establishment of five new VAT commissionarates, four new Customs Houses, and three specialised offices, to be rolled out in three phases.

It also covers the expansion and decentralisation of operations at existing Customs Houses, particularly at Dhaka Airport’s third terminal, as well as enhanced customs and VAT intelligence activities.

NBR expects that the restructuring will boost the institutional capacity of its indirect tax administration, raise the tax-to-GDP ratio, attract more investment, and accelerate the country’s economic growth.

The decisions were approved at a meeting of the secretarial committee on May 25, chaired by Cabinet Secretary Sheikh Abdur Rashid. The meeting’s minutes were issued on June 4.