NBR reform must align with int'l best practices: Unity Council

“We have always been, and still are, in favour of reform. The reform we want will be similar to the best systems and methods recognised in the international arena,” said statement of the council in stepping up its agitation against the split of the revenue authority.

Deputy Commissioner Abdul Quaiyum and Deputy Tax Commissioner Roisun Nesa jointly read out the statement.

The council expressed support for the government’s plan to separate revenue policy from implementation but questioned the effectiveness of the model outlined in the recently issued ordinance, which proposes forming two new departments under the reform agenda.

The statement raised concerns over whether this structure would truly serve national interests or simply empower a group lacking technical expertise in tax administration, ultimately undermining efforts to increase domestic revenue collection.

Referring to international examples, the Unity Council said many developed and developing countries operate through autonomous agencies such as the Canada Revenue Agency (CRA), Australian Taxation Office (ATO), Japan’s National Tax Agency (NTA), South Korea’s National Tax Service (NTS), Germany’s Federal Central Tax Office (FCTO), UK’s HM Revenue and Customs (HMRC), the Internal Revenue Service (IRS) in the US, and similar bodies in Indonesia, South Africa, Kenya, and Ghana.

“We, too, aspire for our NBR to function as an independent, autonomous, and specialized institution—just like in many developed and developing nations—so that it may effectively mobilize revenue, the key driving force behind our country’s development,” it said.

The Unity Council posed several questions: “Did any development agency ever recommend dissolving the NBR as part of the revenue reform or policy separation agenda? Was there any discussion with development partners on this issue during the ordinance drafting? Has any loan condition ever included NBR’s dissolution?”

It also stressed that any new policy institution must be formed with input from all stakeholders and led by officials with relevant expertise in customs, VAT, and taxation.

The council alleged that the current NBR chairman has been non-cooperative throughout the reform drafting process and created obstacles in conveying NBR officials’ expectations to the government.

“During his previous tenure, he halted key audit operations that could have revealed major tax evasion. More recently, he destabilized the economy by irrationally and unilaterally increasing VAT rates,” the statement said.

It further alleged that the chairman is actively obstructing meaningful dialogue between the government and the reform council.

“We do not understand why the government is yet to act on our legitimate demands—whether it is due to internal resistance, influence from specific individuals, or some other excuse,” it added.

As the government has not responded to their four-point demand, the Unity Council announced that its previously declared programs will continue.

From Monday, May 26, all offices under the Tax, Customs, and VAT departments will observe a full work stoppage, except for international passenger services. Imports of medicines and life-saving equipment will remain exempt from the strike.

The council urged the government to issue a clear statement addressing their demands to avoid disruption in the economy and revenue collection during the final phase of the fiscal year.

It also apologised to taxpayers and service recipients for any temporary inconvenience.

“This short-term sacrifice is for the long-term benefit of the country and its people,” it said, assuring that if the demands are met, officials will work beyond office hours to clear backlogs and ensure smooth service delivery, reports UNB.