NBR reform committee not short on proposals

NBR building

By Fahad Ferdous

Dhaka, Mar 21 - Members of the NBR (National Board of Revenue) Reform Committee are struggling to deal with a dilemma: whether their proposals would be implemented by the interim government, or remain unheeded and just gather dust, like the White Paper on the Economy produced by a committee led by Dr Debapriya Bhattacharya, or the work of the team tasked with "Re-strategising the economy and mobilising resources for equitable and sustainable development".

Talking to UNB, two members of the Advisory Committee on NBR Reform this week expressed concerns over the eventual implementation of their proposals.

“It is not about submitting our proposals, there should be a process in place to implement those proposals,” one of the committee members told UNB, on being granted anonymity to discuss potentially sensitive matters.

Another member of the Committee questioned the political commitment, authority and capability of the interim government when it comes to implementing the proposals they put forward.

“We will write down the bitter truth, whether the interim government accepts those or not,” he said.

The reform committee members said that ultimately, the people of the country would make their own judgments on the basis of an array of factors, including the political commitment of the interim government.

The Reform committee, formed on October 9, 2024, comprises two former NBR chairmen—Muhammad Abdul Mazid and Dr. Nasiruddin Ahmed—and three former members: M Delowar Hossain, Farid Uddin, and Aminur Rahman.

It recently submitted its first draft proposal, which was on the separation of revenue collection and policy formulation within NBR.

The committee in its first report highlighted that Bangladesh’s current tax policy deviates significantly from international best practices, which typically feature low rates, minimal exemptions, a broad base, progressive income tax structures, and value-based taxation.

These deviations are seen as impediments to investment, revenue growth, and the establishment of economic and social justice.

“NBR itself does not like reform, reform means reducing power,” one member of the NBR reform committee told UNB.

A central recommendation of the report is to address the inefficiencies and conflict of interest arising from the dual role of the Secretary of the Internal Resources Division (IRD) and the NBR Chairman - currently both positions are held by the same individual.

The next draft proposal of the taskforce, which will be on automation, is likely to be submitted in the next month, according to a Committee member.

The 12-member taskforce, titled "Re-strategising the economy and mobilising resources for equitable and sustainable development", led by former director general of Bangladesh Institute of Development Studies (BIDS) Dr KAS Murshid.

The committee submitted its report to the interim government on January 30, but recently the head of the taskforce expressed his frustration saying that some advisers did not even open the report once to read it.

On the other hand, members of the committee responsible for drafting the White Paper on the state of Bangladesh’s economy have recently voiced their dissatisfaction regarding the lack of governmental action following the submission of their comprehensive report.

The 12-member committee, led by Dr. Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), was established in August 2024 to assess and document the nation’s economic challenges.

The White Paper unveiled significant irregularities across four major sectors, notably energy and physical infrastructure.

The report highlighted discrepancies in data accuracy, cost assessments, and information transparency.

Furthermore, it exposed a concerning nexus among politicians, bureaucrats, business figures, and certain civil society members, suggesting a systemic culture of financial misconduct and autocratic governance.

Despite the gravity of these findings, committee members have expressed frustration over the government’s inaction. Their concerns principally include:

• Lack of Acknowledgment: The government has not formally recognized the report’s findings, nor has it initiated public discussions or debates based on its content.

• Absence of Policy Response: There has been no indication of policy reforms or corrective measures addressing the issues highlighted in the report.

• Transparency Concerns: The committee’s call for increased transparency and accountability appears to have been overlooked, undermining efforts to combat systemic corruption. - UNB