The split of the National Board of Revenue (NBR) and the introduction of two separate entities-Revenue Policy and Revenue Management-marked one of the most far-reaching economic reforms of 2025 under Bangladesh's interim government, reshaping the country's revenue administration amid protests, policy revisions and intense debate.
The reform was formalised through the Revenue Policy and Revenue Management Ordinance, 2025, promulgated on May 12. The ordinance dismantled the decades-old NBR structure and divided its functions between two departments, separating policy formulation from tax administration and collection. By the end of the year, implementation work was underway, though the two new divisions had yet to become fully operational.
The move triggered unprecedented resistance from customs and tax officials. For nearly six weeks following the ordinance, NBR officials and employees staged continuous protests, culminating in a complete shutdown of customs houses and tax offices across the country in late June-at the closing stage of the fiscal year. Revenue collection stalled nationwide, raising serious concerns over fiscal stability. Such a work stoppage had no precedent in NBR's history.
After mediation by business leaders, the protests were suspended. However, the aftermath proved consequential. More than 50 officials and employees faced disciplinary actions, including dismissals, transfers and compulsory retirements, further underscoring the depth of the crisis within the revenue administration.
Responding to demands from protesting officials and concerns raised by economists and the business community, the government later amended the ordinance. A review committee led by Adviser for Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan held consultations with stakeholders, including business leaders, economists and NBR officials. Based on its recommendations, the government revised provisions related to leadership appointments and staffing, placing greater emphasis on professional experience in revenue policy and revenue management.
Under the revised ordinance, the secretary of the Revenue Policy Division must now have experience in macroeconomics, trade policy, planning, or revenue-related work, while the secretary of the Revenue Management Division must be an official with proven experience in revenue collection. The amendments also ensure that experienced professionals are prioritised in staffing both divisions.
Economists and business leaders have long argued that separating tax policy from tax collection would reduce conflicts of interest and curb arbitrary tax increases. The reform also aligns with a key condition of the International Monetary Fund's USD 4.7 billion loan programme. Bangladesh remains among the countries with the lowest tax-to-GDP ratios globally, with revenue collection still limited to around 7-8 percent of GDP.
Former World Bank chief economist in Dhaka Zahid Hossain said the reform should be implemented without further delay. "The revenue-sector reform initiative should be implemented quickly. It will benefit the economy. The longer the delay, the more opportunities will be lost," he said.
As 2025 draws to a close, NBR Chairman Abdur Rahman Khan said efforts are continuing to operationalise the two new divisions. "We are trying our best so that these two departments can start functioning quickly. We hope both divisions will be able to work within the tenure of the interim government," he said.
The NBR reform, widely seen as a turning point in Bangladesh's fiscal governance, now enters 2026 as a work in progress-its long-term success dependent on smooth implementation, institutional stability and sustained political commitment.
