Splitting NBR a brave move: SANEM Executive Director

The government’s decision to split the National Board of Revenue (NBR) into two distinct entities is a brave and timely move, says SANEM Executive Director Selim Raihan, joining the rank of economists lauding the step.

Speaking to journalists, Selim Raihan said the two entities would split the power of tax authorities, thereby brining greater transparency, curbing authoritarianism and preventing under-the-table transactions.

The move aligns with international norms of dividing workload along the lines of policy formulation and policy execution. Apart from ensuring greater transparency, this move would also help modernise tax collection efforts and make the works more efficient.

The NBR Oikya Parishad, an alliance of NBR employees, have called for a three-day pen-down movement, fearing the split-up would threaten their job status.

On Wednesday, they initiated the boycott movement, despite the finance adviser assuring the job prospects will not be impacted by the latest reformist move.

In line with the government and other economists, Selim Raihan has also played down the negative concerns over the bifurcation.

For him, focus should rather be on the future works of the tax bodies: in terms of policies and their implementations.

The country’s tax system is plagued with various problems. The two new entities should expedite works on withdrawing tax reliefs and exemptions, reducing reliance on indirect tax that mostly affect the poor, and putting greater emphasis on direct tax sources like income tax.

Tax authorities should work on holding to account law evading income taxpayers, and increasing the number of income taxpayers. The government should also work to regain the trust and support of employees from the now-defunct NBR.