Mishandling of NBR reform undermined trust and triggered unrest: Professor Mustafizur Rahman

Originally posted in The Financial Express on 25 May 2025

Complete shutdown in revenue offices from tomorrow

Now the recalcitrant officials of the National Board of Revenue announce “complete shutdown” in all the revenue offices countrywide, including export-import assessment on sea, land and air routes, from tomorrow (Monday).

Only international passenger services are exempt from the shutdown meant to make the interim government undo a legal move to disband the revenue board and create two separate divisions on tax policy and tax collection.

The announcement came Saturday at a media briefing by NBR Oikya Parishad to press their four-point demands, including immediate repeal of the NBR-bifurcation ordinance, issued on May 12, 2025.

Alarmed by the toughened stance of the protesters, which halts revenue mobilisation for the national exchequer, economists, traders and business chambers sought immediate solution to the ongoing crisis at the National Board of Revenue (NBR) to make supply chain uninterrupted, continue export and salvage the economy.

On the day (Saturday), the revenue officials observed shutdown at income tax, customs and VAT offices, save customs houses and LC stations, international passenger services and export. The programme would be continued in the same manner today (Sunday), as decided.

Law-enforcing agencies, including armed forces, police, BGB and RAB personnel,deployed at the NBR to maintain order, gave objection to holding the press conference at the NBR building at Agargaon. Later, the NBR officials held press briefing outside the building.

Distinguished fellow of the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman thinks the government has “mishandled the NBR issues from the very beginning, triggering the recent agitation”.

On May 22, the Ministry of Finance (MoF) issued a press statement saying that the ordinance would be amended in line with the discussion with revenue officials.

However, the statement was welcomed by the officials but couldn’t regain confidence of the revenue-board officials as they have noticed ‘hide-n-seek’ in the issuance of the ordinance earlier.

“Regrettably, the whole thing was not handled in a way which would have taken the NBR officials in confidence. This was going to be a massive change for them and their cooperation should have been seen to be essential to the success of any reforms,” says Professor Mustafizur Rahman.

Obviously, what has now transpired is not good for the economy, at a time when the fiscal year coming to an end and such disruption will surely cast an adverse impact on revenue collection,

“I hope that the situation would be settled through mutually agreeable solution and the NBR will continue to do the job that it is mandated to perform,” he adds.

Farooq Ahmed, Secretary-General of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and also Secretary-General of the Bangladesh Employers Federation (BEF), offers the trade body’s readiness to join stakeholder consultation if the government wants to settle the issue through their participation.

“We won’t blame anyone but expect a solution fast,” he says.

Dhaka Chamber of Commerce and Industry (DCCI) President Taskin Ahmed notes that continuous demonstrations at the NBR have effectively stopped the clearance of imported products, leading to significant disruptions to trade and commerce.

“Although export activities are somewhat ongoing, the halt of imports has put sectors reliant on production and raw materials in difficulty. Industrial raw materials, machinery and crucial consumer products are stuck at ports, hindering both business activities and production, ” he says.

Over time, this could harm the national economy and result in higher consumer prices, he alerts.

“We strongly stress that the internal problems within the NBR should be addressed through discussion as soon as possible to guarantee seamless import and export operations,” he urges.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem suggests the government ought to act promptly to settle the issue to avert disruption to import-export trade, which accounts for US$ 300 million per day.

“If shipment faces disruption, apparel makers may face problem to pay Eid bonus and wages to the workers,” he forewarns.

On May 12, the ordinance on bifurcation of the NBR into revenue policy and administration was issued , which the revenue officials found controversial as the provisions have not been discussed with the stakeholders.

The protests flared up on May 14, 2025 with partial pen-down and demonstrations. Following a discussion with three government advisers, the NBR officials found their concerns “ignored”.

Later, the MoF issued a statement assuring that the ordinance would be amended after stakeholder discussion but the statement failed to regain confidence of the officials. On May 21, the revenue- board officials across the country announced their fresh and stiff protest programmes to press home their demand for repeal of the ordinance, resignation of the NBR chairman, making advisory committee report on NBR reform public and reform of the NBR through stakeholder discussions.

Already, CPD’s distinguished fellow Dr Debapriya Bhattachariya and Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman found the NBR -bifurcation move not made in a proper way.