Business leaders slam exclusion of stakeholders in NBR reform committee

A newly formed NBR (National Board of Revenue) reform committee, tasked with overhauling the revenue collection agency, has come under fire from the business community for excluding representatives from the private sector. 

Business leaders say if business representatives are not included in this reform committee, the government's initiative will fail. As a result, the widespread corruption of NBR officials in the country's import-export trade will not be stopped, they say.

The Internal Resources Division of the Ministry of Finance on 9 October, through a notification, formed the five-member NBR reform advisory committee. All members of the committee are former NBR officials. They include former NBR chairmen Md Abdul Mazid and Nasiruddin Ahmed. The remaining three members are former NBR members Md Delwar Hossain (Tax), Farid Uddin (Customs), and Aminur Rahman (Tax).

The NBR member (board administration) will serve as the secretary of the committee, they said, adding that no timeframe has been set for the committee's work, and it has not been announced who will lead the committee.

Md Alamgir Hossain, secretary of the reform committee, told TBS, "This committee has been formed at the initiative of the finance adviser. We have followed the instructions regarding the formation of the committee. The committee has already started its work. Including or not including business representatives or economists is not within our jurisdiction."

"Without inclusion of the business community in the NBR reform committee, it will be difficult to create an appropriate tax collection process that can help the economy."

Ashraf Ahmed, President, Dhaka Chamber of Commerce and Industry

The committee will provide policy advice on revenue policy, revenue administration, evaluation and modernisation of NBR's institutional capacity, formulation of institutional frameworks and policies for integrity and good governance, citizen engagement and stakeholder participation activities, and any other matters related to revenue reforms, said the officials.

Finance Adviser Dr Salehuddin Ahmed could not be reached despite attempts over the phone. 

Business leaders' objection

Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry, told TBS, "We welcome NBR's new initiative for reforming itself.  We feel the inclusion of the private sector business community in such initiatives is needed to make meaningful progress. Without such inclusion, it will be difficult to create an appropriate tax collection process that can help the economy."

BGMEA Vice President Rakibul Alam Chowdhury thinks this committee needs to be restructured for revenue policy reform by involving business representatives and economists. "Otherwise, the initiative for NBR reform will not be successful."

Mahfuzul Haque Shah, an immediate past director of the Chittagong Chamber of Commerce and Industry, told TBS, "We have been raising issues like bribery, corruption, and complex regulations at the NBR for a long time. The individuals included in the NBR reform committee are the same ones we have been informing about these problems for years. As we did not see any initiative taken by them during their tenure despite being aware of the challenges faced by the businesses, we are not optimistic about this time either."

He added, "Our point is that each department should be reformed separately by consulting stakeholders. The NBR needs to be reformed to match how similar agencies operate worldwide. This will reduce corruption while also increasing government revenue."

Amirul Haque, managing director of Seacom Group, told TBS, "Reform in any sector is impossible without stakeholder representatives. No reform will succeed without public hearings. Reforms cannot be sustained if the private sector is excluded. Therefore, at least four representatives from the private sector should be included in the NBR reform committee."