Staff Reporter :
The draft of the Revenue Policy and Revenue Management Ordinance has failed to meet the expectations of the customs cadre. If implemented without the necessary amendments, it could hinder the primary objectives of the National Board of Revenue (NBR) reform and pose a significant obstacle to increasing the country’s tax-to-GDP ratio.
The ordinance, aimed at streamlining the revenue management system, ensuring compliance, and promoting sustainability through independent operations, proposes the dissolution of the NBR and the establishment of two new entities: the Revenue Policy Division and the Revenue Management Division.
However, concerns have surfaced that the draft may deviate from its original intent, potentially undermining the reform process. According to some tax officials and committee members, the Revenue Reform Committee’s recommendations regarding the separation of revenue policy and management have been largely overlooked.
The committee had proposed the inclusion of professionals from various fields, such as business, economics, and chartered accounting, in policy-making alongside tax and customs experts.
However, the draft appears to have ignored this suggestion, with policy and management powers seemingly remaining in the hands of the administration cadre.
A member of the Revenue Reform Committee stated that the way the draft has been formulated effectively hands control of revenue policy to the administration cadre.
“This has been done deliberately and will not achieve the intended separation,” they said. “We had recommended the involvement of professionals from diverse sectors, including business and economics experts, in policy formation. However, the draft has excluded this input.”
As the draft ordinance is set to be issued soon, discontent is growing among NBR officials. Separate meetings were held by customs and income tax cadre officials on Saturday and Sunday to express their frustration with the draft. They are planning to raise their concerns with the finance adviser in a larger forum next Saturday.
