The National Board of Revenue (NBR) has been split to improve efficiency and broaden the country’s tax base, the interim government said today.
“The interim government has announced a major structural reform: the dissolution of the National Board of Revenue (NBR), to be replaced by two distinct entities under the Ministry of Finance – the Revenue Policy Division and the Revenue Management Division,” said a statement issued by the Chief Adviser’s Press Wing this afternoon.
“This decision aims to separate tax policy-making from tax administration to improve efficiency, reduce conflicts of interest, and broaden the country’s tax base,” it read.
Established over 50 years ago, the NBR has consistently failed to meet its revenue targets. Bangladesh’s tax-to-GDP ratio is approximately 7.4%, one of the lowest in Asia. For context, the global average is 16.6%, while Malaysia’s stands at 11.6%.
To achieve the development aspirations of its people, Bangladesh must raise its tax-to-GDP ratio to at least 10%, according to the statement.
Restructuring the NBR is critical to this goal. There is growing consensus that a single institution should not be responsible for both creating tax policy and enforcing it-such an arrangement breeds conflicts of interest and promotes inefficiencies. For years, businesses in Bangladesh have complained that policies have often prioritised revenue collection over fairness, growth, and long-term planning.বিস্তারিত