Six months into the BNP Government, signs of an effort to translate its pre-election commitments into policy action, particularly in the area of revenue reform.
A significant development came on August 18, 2026, when Finance Minister Amir Khosru Mahmud Chowdhury reemphasised that the government had taken the final decision to split the existing National Board of Revenue (NBR) into two separate institutions in the ‘Revenue Conference-2026’ held at Bangladesh-China Friendship Conference Centre in the capital.
The appointment of Ahsan Habib as acting chairman of the NBR, drawn from the organisation’s own internal cadre, has added further significance to the reform agenda and is being viewed by many as a possible first step towards restructuring the revenue authority.
It is the continuation from last government’s aim, which issued a landmark ordinance on May 12, 2025 (updated on September 1, 2025). The Ordinance dissolved the NBR and the IRD of Ministry of Finance, paving the way for two new divisions: the Revenue Policy Division (RPD) and the Revenue Management Division (RMD). This restructuring separates tax policy formulation from revenue collection, aiming to enhance transparency, accountability, and efficiency.
Revenue Policy Division (RPD)
Under the Ministry of Finance, the RPD will design tax policy and reform. Its role includes expanding the tax base, rationalising rates, limiting exemptions, and drafting new laws. It will oversee appellate tribunals, manage international tax treaties, and conduct research to align fiscal measures with national development goals. An advisory committee of experts from economics, law, accounting, business, and relevant ministries will guide its work, ensuring policy decisions remain evidence-based and forward-looking.
Revenue Management Division (RMD)
Also under the Ministry of Finance, the RMD will enforce income tax, VAT, and customs laws. It will manage taxpayer services, oversee appeals offices, and coordinate with civil service cadres in Taxes and Customs & Excise. By driving automation and interconnectivity across tax offices, the division aims to modernise revenue collection, strengthen compliance, and improve taxpayer experience.
Impact on Income Tax Act 2023
The restructuring has already reshaped the Income Tax Act 2023 through a published gazette notification. The distribution of current NBR’s role highlights the RMD’s dominant operational role, while the RPD’s scope remains policy-oriented.
Some overlaps have also surfaced. As an instance, the RMD is empowered to issue non-deduction tax certificates, while section 251 assigns treaty exemption certificates to the RPD. Likewise, rules on audited financial statements fall under the RPD, yet section 169 requires RMD’s involvement when returns are filed. And although the Ordinance placed tribunals under the RPD, it stipulates that tribunal presidents must be drawn from the RMD.
Finance Minister addressed in the ‘Revenue Conference-2026’ – “The Revenue Policy Division will serve as the Government’s think tank, while the Revenue Management Division will work as its action team”
The abolition of the NBR and IRD marks a historic shift in Bangladesh’s fiscal governance. By separating policy from management, the Government seeks to reduce conflicts of interest and align with international best practices.
Most importantly, it is a decisive step toward modernising fiscal governance. The BNP Government deserves recognition for carrying forward this ambitious restructuring with resolve, ensuring that the institutions it builds today will endure beyond political cycles and strengthen Bangladesh’s economic future.
Sarker Nahidul Islam FCA is a Partner of Rahman Rahman Huq (RRH), KPMG in Bangladesh and a fellow member of the Institute of Chartered Accountants of Bangladesh (ICAB).
[The views expressed in this article are the author’s own and do not necessarily reflect the position of The Daily Bonik Barta or the organisation they work for.]