United News of Bangladesh

The government has formed a high-profile nine-member inter-ministerial committee to assess the financial losses suffered by the state due to the prolonged strike and work abstention by Customs, VAT and Tax department officials. According to an official order, the committee will review both the revenue losses and the broader economic impact caused by disruptions in customs clearance, import-export activities and tax collection. The committee, headed by Syed Robiul Islam, Joint Secretary of the Internal Resources Division, comprises representatives from the Finance Division, Ministry of Commerce, Ministry of Industries, Ministry of Shipping (Chattogram Port Authority), National Board of Revenue (NBR), BGMEA, and FBCCI. The Deputy Secretary (Administration-1) of the Internal Resources Division will serve as the member-secretary. NBR bifurcation will be complete by December this year: Official The committee has been directed to submit its findings within 30 days. The committee has been assigned three specific tasks, the first of which is to estimate the revenue losses incurred from the two-day closure of Chattogram Customs House on June 28–29, 2025. The second task is to calculate the overall revenue shortfall caused by the two-month-long strike that disrupted operations at customs houses, VAT offices, bond commissionerates, tax zones, and appellate bodies. The third task is to assess the broader economic impact of the strike, including its effect on import and export activities at land and river ports. The work stoppage by revenue officials has sparked significant concerns among business leaders, who warn of supply chain disruptions and financial strain on exporters and importers.

The NBR Reform Unity Council on Saturday dismissed the claims of any compromise with the Office of the Finance Adviser over ongoing revenue sector reforms, asserting that no agreement was reached during the Thursday’s [May 22] meeting. In a statement, this unity council said the subsequent press release suggesting National Board of Revenue (NBR) would not be abolished until the issuance of an ordinance, saying it created ‘unnecessary confusion’ among the public, particularly within the media community. Citing Section 1(2) of the promulgated ordinance, the unity council argued that the NBR must be abolished until the government gazette notification is issued to operationalize the ordinance. The statement outlined four key demands, immediate repeal of the promulgated ordinance, removal of NBR Chairman Md Abdur Rahman Khan, public disclosure of the consultative explanation proposal on revenue reform, inclusive discussions on the proposed reform draft involving all stakeholders, government bodies, civil society and relevant empowered members. “We need to ensure a proper and sustainable revenue system,” the council said in the statement. They claimed that their demands are very logical in the larger interest for the country, as acknowledged by country’s leading economists, think tanks and other experts. “We want a fundamental reform of the NBR and the reform we want will be similar to the best system and method recognised in the international arena,” it added. The council also expressed concern that the proposed reforms should not serve the interests of any specific group under the guise of national security, stating, “Country and its development plan will be accurately reflected; the revenue power will be more effective, progressive and corruption-free and the reform will not be a tool of special security interests.” NBR officials go on full-fledged countrywide strike The statement questioned why the government has yet to respond clearly to their four-point demand, adding, “….and due to whose instigation, we are being opposed.” As the government has not yet given a clear answer to their above four specific demands, according to the statement, their previously announced program of action will remain unchanged. On May 25 (Sunday) they called for a full-day strike at all Income Tax, Customs, and VAT offices, excluding Customs House and LC from 9am to 5pm. Export and international services will remain exempt from the strike. Besides, they announced for a full-day strike at all offices on May 26 (Monday) except international services under the International Member. The unity council has called upon all officers and employees from all tax, customs and VAT-related departments in Dhaka to gather at the NBR premises at 9am on both days. The statement also noted a heightened security presence at the NBR building on Saturday morning, including police, BGB, and RAB personnel, raising concerns among Council members, stating, “We have a question in our minds about this.”

The full-fledged nationwide strike enforced by officers and employees of the National Board of Revenue (NBR) is underway peacefully on Saturday, as they press for their four-point demand. The strike enforced by NBR Reform Unity Council began in the morning at all offices of the Tax, Customs and VAT Departments, keeping the Customs Houses and LC Stations out of its purview. The officials threatened to continue their protests until their all demands are met. Their demands are repealing the ordinance to dissolve the NBR, removal of its chairman, publication of the Revenue Reform Advisory Committee’s recommendations on the NBR website, and ensuring appropriate and sustainable revenue system reforms through review and discussion with all relevant stakeholders. Amid the growing tensions, members of the army and police were deployed outside the NBR headquarters in the capital this morning. The NBR Reform Unity Council on Wednesday announced a series of new programmes, including ongoing non-cooperation with the NBR chairman, to press home their demands. Escalating Tensions: Army, police deployed at NBR A sit-in programme was held at the NBR and its offices in and outside Dhaka on Thursday. The NBR Reform Unity Council started pen-down on May 14 and suspended its on May 19 following a government proposal for dialogue, initiated under the directive of the Chief Adviser.  

Bangladesh’s fiscal stability faces mounting pressure as a pen-down strike by National Board of Revenue (NBR) officials exacerbates an already significant revenue shortfall, said economists. “Of course, revenue collection is being hampered due to the pen-down strike,” eminent economist Professor Abu Ahmed, also the Director and Chairman of the Investment Corporation of Bangladesh, told UNB on Tuesday. He, however, said it is not justified for government officials in such high positions to resort to strikes. Responding to a query about possible ways to recover the losses, Abu Ahmed said there is no scope to recoup the losses incurred. The strike, initiated in response to the government’s recent decision to dissolve the NBR and establish two separate entities—the Revenue Management Division (RMD) and the Revenue Policy Division (RPD)—has disrupted tax collection processes nationwide. The government’s move to restructure the NBR formalised through a presidential ordinance on May 13, 2025, aims to enhance efficiency in revenue collection and policy formulation. But, the abrupt transition has been met with resistance from NBR employees, who express concerns over job security and the potential dilution of their roles within the new framework. The pen-down strike has led to significant delays in processing tax returns, customs clearances, and VAT collections. NBR Reform Unity Council suspends pen-down programme This industrial action compounds existing challenges in revenue mobilization. In the first half of the fiscal year 2024–25, the NBR reported a 25% decline in revenue collection compared to the same period in the previous year, amounting to a shortfall of approximately Tk 57,724 crore. The revenue collection target upto March 2025 was Tk 322,151 crore while the collection is Tk 256,486 crore. The downturn is attributed to a combination of political unrest, decreased imports and systemic inefficiencies within the tax administration. Economists warn that the ongoing strike could further impede revenue collection efforts, potentially widening the fiscal deficit. The Centre for Policy Dialogue (CPD) projects that if current trends persist, the revenue shortfall could reach Tk 105,000 crore by the end of the fiscal year. Such a deficit may compel the government to curtail public expenditures or increase borrowing, thereby affecting economic growth and development initiatives. In response to the crisis, Finance Ministry officials have initiated dialogues with representatives of the striking employees to address their grievances and facilitate a smooth transition to the new organisational structure. Besides, the government is exploring interim measures to maintain essential revenue collection functions during the strike. The situation remains fluid, with stakeholders closely monitoring developments. The resolution of the strike and the successful implementation of the new revenue divisions are critical to restoring confidence in Bangladesh’s fiscal management and ensuring the continuity of essential public services. Finance Adviser to discuss NBR reforms with officials Tuesday “There’s no doubt the pen-down strike has caused losses,” a senior NBR official told UNB on condition of anonymity. “But once the situation is resolved, much of that can be recovered, as the pending revenue tasks will still need to be completed. If an amicable solution is reached soon, covering the shortfall shouldn’t be a major challenge,” he added.

Officers and employees of the National Board of Revenue (NBR) continued their work abstention on Thursday, marking the second day of a three-day protest called by the NBR Reform Unity Council—a platform representing officials from the Customs, VAT, and Income Tax wings. The work abstention, which began at 10 am, is scheduled to continue until 3 pm Thursday. It will resume at the same time on Saturday. The protest stems from the government’s recent decision to restructure the NBR by splitting it into two divisions—Revenue Policy Division and Revenue Management Division—without, according to protesters, incorporating the recommendations of the NBR Reform Committee. On the second day, most officials and employees symbolically laid down their pens to demonstrate their participation in the protest. NBR personnel have been protesting for weeks, demanding the removal of provisions in the new law that allow administrative cadre officers to be appointed to key positions under the restructured framework. Youth forum demands minimum price of Tk 90 for a 10-Stick cigarette pack The controversial ordinance was reportedly published late Monday night. Under the new ordinance, the government may appoint any qualified government officer as secretary or senior secretary of the two newly formed divisions. The ordinance also places the Customs, Excise and VAT Appellate Tribunal and the Income Tax Appellate Tribunal under the jurisdiction of the Revenue Policy Division of the Finance Ministry. The interim government, led by Professor Muhammad Yunus, recently approved the change. It allows posts within the two divisions to be filled by professionals with expertise in income tax, VAT, customs, economics, business administration, research and statistics, administration, audit and accounting, and legal affairs. The new system argues that separating policy formulation from revenue collection management will enhance transparency, accountability, and efficiency within the revenue system. It also states that administrative posts within the Revenue Management Division will be staffed by officers from the Bangladesh Civil Service (Administration) cadre and by existing employees of the Revenue Management Department. The NBR Reform Committee was formed on October 9 last year, comprising former NBR chairmen Muhammad Abdul Mazid and Nasiruddin Ahmed, along with former members Delwar Hossain and Aminur Rahman.