The government has rewritten three key tax laws to align with plans to dissolve the National Board of Revenue and split its mandate between two new institutions — the Revenue Policy Division and the Revenue Management Division.
Ordinances issued on 6 November amended the Income Tax Act, the Customs Act and the Value Added Tax and Supplementary Duty Act. The changes synchronise the statutes with the Revenue Policy and Revenue Management Ordinance launched in May, which sets out the structural overhaul.
Once the reform ordinance is formally enacted, the two divisions will inherit the NBR’s dual role of framing tax policy and administering revenue collection. Each division will operate under the finance ministry, led by a secretary, with operational responsibilities now legally embedded through the new amendments.
NBR Chairman Md Abdur Rahman Khan said the legislative updates were a necessary legal bridge to operationalise the transition.
“The laws have been amended to ensure consistency with the Revenue Policy and Revenue Management Ordinance,” he said, adding that the finance ministry is now finalising the organogram — the staffing blueprint required to activate the new framework.
“The organogram is the final major task. Once it is approved, we will move toward full implementation,” he said, without offering a concrete timeline for execution.
The reform roadmap has not been without friction. The initial draft of the ordinance triggered protests within the NBR over uncertainty around whether tax and customs cadre officials would be prioritised for senior roles in the two new divisions. Following the backlash, the government revised the ordinance in August.
In September, Finance Adviser Salehuddin Ahmed publicly said the government aims to complete the full institutional separation of tax policy and administration by December.
The reform drive has also been discussed with the International Monetary Fund during its ongoing mission in Dhaka. Khan said the tone of the engagement has been constructive.
“They are satisfied so far. Their primary concern is continuity of the reforms so that the next government carries them forward,” he said.
Khan underscored that the latest legislative amendments reflect the government’s commitment to meeting reform timelines.
“The three amended acts demonstrate our intent. We are trying to complete everything as quickly as possible,” he said.
He also ruled out immediate fiscal shocks, saying no new taxes will be introduced and no existing tax exemptions will be withdrawn ahead of their scheduled expiry.
“On tax increases, the IMF did not press us. They simply asked whether we had such plans,” he said.
Referencing January’s VAT and supplementary duty increases on roughly 100 goods and services — measures introduced last year after IMF recommendations — Khan said the context then was exceptional.
“Last year was a national emergency. If we repeat that, it could become a trend. The IMF understands that markets operate on an annual cycle,” he said.
The restructuring is one of the most far-reaching administrative changes in Bangladesh’s revenue system, marking a shift toward institutional separation between tax policy design and tax collection operations.
