We are optimistic about the government’s recent decision to dissolve the National Board of Revenue (NBR) and split the revenue sector into two separate divisions -- Revenue Policy and Revenue Management.
This is unquestionably a significant shift in our fiscal administration, and is also a long time coming. The NBR has, year after year, been rightfully criticized, not just for its inability to meet revenue targets, but equally importantly, its inability to ensure transparency.
Ultimately, it had become an institution that struggled with inefficiencies, all the while perpetuating bureaucratic inertia, together with increasing allegations of harassment against taxpayers.
There was, therefore, an urgent need for structural reforms.
However, while the call for change is justified, the manner in which this transformation is being executed does raise some questions. That the ordinance was passed without broad consultation, notably ignoring the opinions of relevant stakeholders, does not inspire confidence.
Such major decisions regarding our revenue architecture should not be made in isolation but instead through open dialogue with all relevant stakeholders -- which include revenue officials, business leaders, and civil society.
A democratic procedure is how we ensure that reforms are not only effective but are also widely accepted.
However, with the restructuring now in the works, we expect the new iteration of our revenue administration to be guided by the principles of accountability and service to the people.
This means having policies that are people-centric, focusing on facilitating compliance rather than intimidating or harassing taxpayers, which sadly had become the modus operandi of the NBR.
We need a revenue administration that focuses on building trust, simplifying procedures, and ensuring that revenue collection develops our nation without burdening everyday citizens. Bangladesh can then finally hope to have a revenue system that truly works for the people, rather than against them.
Tuesday, June 24, 2025
