NBR Split to Continue, Misconceptions Cleared: Finance Adviser

Finance Adviser Dr Salehuddin Ahmed on Tuesday reaffirmed that the National Board of Revenue (NBR) will remain divided into two separate entities—tax and customs—putting an end to earlier confusion surrounding the restructuring. The clarification followed a meeting with cadre officials at the Secretariat.

“Officials have been informed that the decision to split the NBR—based on national interest, public interest, and business considerations—will remain unchanged,” Dr Salehuddin said.

He acknowledged that several implementation steps lie ahead and assured officials that their concerns will be considered carefully during the formulation of regulations for the two newly formed departments. “We will try to accommodate their demands as much as possible while drafting the new rules,” he added.

However, Dr Salehuddin made it clear that no further formal meetings with NBR officials on this matter are planned. “An advisory committee is already in place, and officials will communicate with that committee going forward,” he said.

When asked about the meeting’s outcome, Dr Salehuddin described it as “productive.” Regarding the timeline, he explained that the newly separated departments would begin operations only after the issuance of a gazette notification, adding, “There is still much groundwork to be completed.”

On how quickly the full implementation would be accomplished, he said, “We are trying to move as fast as possible.” He also noted that the process could not be completed before the national budget presentation scheduled for June 2.

Regarding ongoing protests by NBR officials, Dr Salehuddin urged them to end their pen-down strike but remained noncommittal about whether they would comply. “We have asked them to withdraw their movement; whether they do or not is not my concern,” he stated.

NBR Chairman Md Abdur Rahman Khan, when contacted, said, “The Finance Adviser and other advisers have listened to the concerns raised by officials. The ministry will take further action accordingly.”

The meeting was attended by senior officials, including Energy Adviser Dr Muhammad Fouzul Kabir Khan and Environment and Forest Adviser Syeda Rezwan Hasan, along with representatives from the Ministry of Finance and the NBR.

This follows a government notification issued on May 12 that officially split the NBR into two departments: Revenue Policy and Revenue Administration. The decision triggered strong protests from NBR officials, who claim that the restructuring sidelines officers from the tax and customs cadres and imposes undue control.

In response to these protests, many officials initiated a pen-down strike.

A press release from the Finance Ministry noted that representatives from the Revenue Reform Advisory Committee, the BCS (Tax) cadre, and the BCS (Customs and Excise) cadre expressed their views on the ‘Revenue Policy and Revenue Administration Ordinance, 2025’ during the meeting.

The release emphasized that officials’ concerns and suggestions were given due importance, and the Adviser assured that these issues would be carefully addressed moving forward.