Advisory committee 'dissolved' a day after warning against NBR division

The government has dissolved the advisory committee for the split ordinance of the National Board of Revenue, a day after the body warned that dividing the institution “out of spite” would create a “disastrous” situation for the nation.

The committee was formed in October last year to guide NBR reforms.

On Sunday, the Internal Resources Division issued a gazette notification formally declaring the committee defunct.

Earlier on Saturday, a member of the committee expressed concerns that the recommendations in the Revenue Policy and Revenue Management Ordinance were not adequately reflected in the piece of legislation issued by the government.

Committee member Farid Uddin warned that if the NBR were divided into two parts due to “hatred” or errors stemming from the ordinance, it would create a “disastrous” situation for the nation.

At a roundtable on NBR reforms held in Gulshan, he spoke on the issue.

He said, “We introduced the concept of dividing the revenue policy and revenue management. However, the actual implementation of our recommendations, as I personally feel, did not align with our vision.”

The gazette notification said the activities of the advisory committee on NBR reform were “concluded” because the Revenue Policy and Revenue Management Ordinance, 2025, had been “issued” with the aim of separating revenue policy and revenue management functions.

The initial task of this five-strong committee, however, was not to split the NBR.

While they had recommended the division of revenue policy and management, their view is that the resulting ordinance did not follow their recommendations.

When the committee was formed, it was tasked with advising on NBR reform proposals as well as revenue policy reform.

On May 12, the government issued the ordinance dissolving the NBR, replacing it with the Revenue Policy and Revenue Management Ordinance, 2025.

Following this, NBR employees launched protests, including work stoppages and sit-ins.

Their primary demand was to prevent the appointment of secretaries from the administration cadre to leadership positions and instead appoint experienced officers from the BCS Taxation and BCS Customs and Excise cadres.

Due to the mounting pressure, the government withdrew the ordinance, announcing amendments.

The revised ordinance now includes provisions for appointing experienced government employees to leadership roles in the newly formed Revenue Policy and Revenue Management departments.

The government proposed 11 changes in the Revenue Policy and Revenue Management (Amendment) Ordinance, 2025.

Farid said, "I have detailed what is stated in the ordinance the government issued in this sheet. I have also stated what should happen on one side. You should read this document; it should be discussed.

“Because if there is a mistake here or if the coordination between these two divisions goes wrong, the situation will be worse than the current one."

He advised business communities to review the document, understand its implications, and share their feedback with the government through forums and the media to prevent mistakes.

Muhammad Abdul Majid, another member of the committee and former NBR chair, said the proper implementation of the committee's recommendations is a matter of political “commitment”.