The government has issued the eagerly awaited Revenue Policy and Revenue Management (Amendment) Ordinance, 2025, bringing 11 significant changes to improve revenue management and tax administration in the country.
The new ordinance, released on Monday night by the Ministry of Law, Justice, and Parliamentary Affairs, includes critical revisions aimed at appointing more qualified and experienced officials to key positions.
One of the key updates in the amended ordinance is the appointment of the Secretary of the Policy Division. Previously, the ordinance only required a suitably qualified government officer to take on the role.
The amendment now specifies that the Secretary must be an individual with expertise in macroeconomics, trade policy, or revenue management, ensuring that leadership in the Policy Division is more aligned with the needs of the modern economy.
Furthermore, the changes extend to the filling of positions within the Policy Division. The new ordinance now mandates that key roles in income tax policy, customs policy, VAT policy, international trade, and related subdivisions be filled by officers with direct experience in revenue collection.
A new provision also expands the scope to include individuals with expertise in public administration, economics, law drafting, and research to ensure that the Policy Division benefits from a broad range of skills.
In addition to these appointments, the ordinance has revised Section 5 to redefine the scope of the Policy Division. Rather than simply focusing on tax law enforcement, the new guidelines emphasize the analysis of revenue policy impact, tax expenditure, and the state of revenue collection, giving the division a more comprehensive role in shaping fiscal policies.
Changes to the Management Division are also significant. The ordinance now directly mandates the appointment of qualified officers with revenue collection experience as Secretary of the Management Division.
Furthermore, the positions within income tax, VAT, and customs law enforcement, which were previously to be filled from specific cadres like Bangladesh Civil Service (Customs and Excise), will now be filled from officers with hands-on experience in revenue collection.
The ordinance also revises the way field-level law enforcement posts are handled. The updated law now ensures that these positions are filled by officers with relevant experience in revenue collection, replacing the earlier provision that called for officers from specific service cadres.
A notable expansion is also seen in the scope of the Revenue Management Division, which is now tasked with not just formulating revenue management procedures but also amending and interpreting related rules, policies, and instructions. This reflects the growing complexity and need for flexibility in the country’s tax administration.
Another important change is in the area of automation. The ordinance now emphasizes speeding up automation activities within the Revenue Management Division and improving connectivity between all wings, including the Revenue Policy Division, to create a more integrated system.
Finally, the ordinance has clarified the assignment of personnel from the existing NBR staff. It ensures that the necessary staff will be posted to the Revenue Policy Division from the Revenue Management Division based on prescribed service regulations, helping streamline the division of labor.
These amendments are part of the government’s broader efforts to enhance efficiency in revenue collection, simplify operations, and ensure that tax policies are more responsive to the dynamic global economy.
Experts believe that these changes will contribute significantly to improving Bangladesh’s tax administration and fiscal management.
