The protesting National Board of Revenue (NBR) Reform Unity Council on Sunday called off their move for complete shutdown, after discussion with the Finance Adviser Salehuddin Ahmed and requests from trade bodies to call off their strike amid the country’s greater interest.
“Responding to the request of the country's leading business leaders and in the larger interest of the economy and the people, the NBR Reform Unity Council withdraws its complete shutdown, to keep the country's import-export and supply chain functioning,” the council said in a statement issued.
Earlier on the day, the government warned the protesters to diffuse the situation, and also decided to declare NBR operations as an essential service.
To resolve the prolonged crisis, the government also formed a panel involving five advisers headed by Energy Adviser Fouzul Kabir Khan, although it did not mention the detailed terms of reference for the committee.
Top business leaders also met in an emergency meeting with the Finance Adviser to find an amicable solution to the ongoing NBR stalemate.
Chamber and trade body leaders said they were seeking a resolution to the impasse, as the ongoing work abstention by NBR officials is causing a serious crisis in export and import activities.
Warning to protesters
Before this meeting, the government decision came through a formal statement from the chief adviser’s office on Sunday afternoon after NBR officials completed the shutdown of the center for the second consecutive day on Sunday, demanding the immediate removal of its chairman.
“We hope that the officials and employees will return to work immediately and refrain from illegal and destructive activities against national interests. Otherwise, the government will be compelled to take strict measures to protect the people and the national economy.”
The CA’s office also said that the biggest constraint to implementing a development-oriented budget is the country's weak revenue collection system.
“Our revenue collection remains far below what the state requires. The core reason is a flawed, irregular, and corruption-ridden tax administration. In light of this, the interim government has decided to restructure the NBR after consultation with all relevant stakeholders.”
The government raised “deep concern” over the actions of a section of NBR officials and staff who, it said, have been obstructing revenue activities under the guise of protest.
“The government is observing with deep concern that in order to obstruct the work of revenue reform, some officials and employees have been illegally and immorally disrupting the country's trade, commerce, import-export, and revenue collection activities for the past two months, severely disrupting them and creating extreme suffering in the name of the movement, which is completely unacceptable.”
“This so-called movement has caused severe public hardship and is completely unacceptable,” it stated.
Despite repeated calls for dialogue and clear statements from the government indicating a willingness to consider their demands, the protesting officials “refused to engage,” the statement added.
“Instead of seeking an acceptable solution through discussion, they have adopted an inflexible stance that continues to inflict damage on the national economy.”
Essential service
The statement also said the interim government has decided to declare all National Board of Revenue (NBR) services essential, a designation that compels employees in key customs and tax role to remain on duty even during protests or strikes.
“In the national interest of keeping vital import-export and foreign trade operations functional, the government has decided to declare all categories of employment under all customs houses, ICDs, bond commissionerates, and tariff stations operating under the National Board of Revenue s essential services,” the statement read.
Declaring a job or sector as an essential service means work in that area is considered critical for public welfare and must continue without interruption, even during strikes or emergencies.
This typically limits the right of workers in those services to strike or suspend work and can compel them to return to duty to maintain vital functions.
5-member panel of advisers
According to a statement by the Cabinet Division, with Fouzul Kabir Khan, the other committee members are Housing and Public Works Adviser Adilur Rahman Khan, Labour and Employment Adviser Brigadier General (Retd) M Sakhawat Hussain, Environment, Forest, and Climate Change Adviser Syeda Rizwana Hasan, and Commerce Adviser Sk Bashir Uddin.
According to a statement, they formed the committee to swiftly resolve the crisis.
Protests
During a press conference in front of the main gate of the NBR headquarters in the capital, the council’s secretary general Additional Tax Commissioner Sehela Siddiqua spoke on behalf of the platform.
She said: “The government has unilaterally declared all levels of employment at NBR as essential services. This reflects extreme apathy and an undemocratic attitude towards our demands and the real crisis.”
Sehela added: “Despite repeated calls for dialogue, the government continues to rely on administrative suppression.
We have 11 logical demands concerning the restructuring of the NBR and revenue reform. Without resolving any of these, repressive measures are being taken against our work abstention.”
Developments
On May 12 midnight, the government officially issued an ordinance to split the National Board of Revenue (NBR) into two separate entities: the Revenue Policy Division and the Revenue Administration Division.
The NBR Reform Unity Council has been demonstrating with a series of protest programs demanding structural reforms and the removal of the NBR chairman, citing allegations of administrative irregularities, officer intimidation, and obstruction of pro-reform efforts.
Since early June, the agitating officials have held work abstentions, hunger strikes, and human chains, disrupting services in tax, VAT, and customs offices across the country.
The government backed down in the face of their protest. They said discussions would be held with NBR officials and employees to implement the ordinance.
Even after they rejoined work before Eid-ul-Adha, the protesters remained steadfast in demanding the resignation of the NBR chairman and declared him “undesirable.”
Later, the NBR chairman returned to the office under tight security from the army and law-enforcing agencies.
When he returned to the office, Rahman issued “stand releases” to some of the protesting officials and did not allocate rooms for them to hold seminars. This led to the officials distancing themselves from him on various issues.
World Bank, IMF to assist NBR reforms
The International Monetary Fund (IMF) and the World Bank have officially begun a joint initiative aimed at enhancing revenue mobilization and separating the National Board of Revenue (NBR) into distinct policy and administrative bodies.
Chris Papageorgiou, chief of the Development Macroeconomics Division in the IMF's Research Department, confirmed this development during a virtual briefing with Bangladeshi journalists from Washington on the day.
"This is starting now. We are in discussions with the authorities," Papageorgiou said, describing the "Joint Revenue Mobilization Initiative."
He explained that the two global financial institutions are coordinating forces across "four primary pillars" to drive revenue growth.
The IMF official also said: "These pillars encompass both 'policy measures' and 'structural measures like the separation of policy and administration' within the NBR.
Addressing concerns about the ambitious Tk240,000 crore revenue target set for Bangladesh by December 2026, particularly amid ongoing societal challenges, Papageorgiou acknowledged the "difficult environment."
However, he said the target was designed to be "ambitious but achievable."