Reasons behind NBR’s division

The interim government has dissolved the National Board of Revenue (NBR) and established two independent departments under the Ministry of Finance- the Revenue Policy Division and the Revenue Management Division.

Shafiqul Alam, the press secretary to the chief adviser on Tuesday (May 13) said it is a major structural reform. The aim of this decision is to increase the efficiency of the country's revenue system, reduce conflicts of interest, and expand the scope of revenue collection by separating revenue policy formulation activities from revenue collection management.

The NBR, established more than fifty years ago, has consistently failed to achieve its revenue targets. Bangladesh's tax-to-GDP ratio is about 7.4 percent, one of the lowest tax-to-GDP ratios in Asia. To achieve the desired development goals, Bangladesh must increase the tax-to-GDP ratio to at least 10 percent.

Restructuring the NBR is crucial to achieving this goal.