The government has finalised its decision to abolish the National Board of Revenue (NBR) and divide the country’s revenue administration into two separate entities, with legislation to formalise the move expected to be enacted soon.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury disclosed the decision after a meeting with customs and tax officials at the NBR headquarters in Agargaon, Dhaka, on Wednesday.

He said the decision to restructure the NBR had already been finalised and the government would soon introduce the necessary legislation to give it legal effect.

Speaking about the country’s overall economic situation, the minister said the government was working with specific targets to ensure economic development and maintain financial discipline. He expressed optimism that these initiatives would produce positive results in the near future, including the desired growth in gross domestic product (GDP) and revenue collection.

Regarding revenue performance, Amir Khosru said income tax collection had recorded growth of more than 14 per cent, while customs revenue had also increased by around 14 per cent. However, growth in value-added tax (VAT) collection remained relatively low.

He expressed hope that VAT collection would improve following the restoration of the monthly VAT return filing system. Revenue collection is also expected to gain momentum in the second, third and fourth quarters compared with the first quarter.

Emphasising the proper use of public money, the minister said every penny of taxpayers’ hard-earned money must be utilised effectively. The government is assessing the expected returns and employment opportunities associated with each project and investment, ensuring that public funds are not spent without proper planning and calculations.

On the International Monetary Fund (IMF) loan programme, he said it was only one component of the government’s broader economic programme. The government was also working with several multilateral development partners, including the World Bank, Asian Development Bank (ADB) and Islamic Development Bank (IsDB).

He added that alternative financing sources, including bonds, were also being explored.

According to the minister, a working group is reviewing ongoing programmes and structural issues with the IMF. A specific progress report and roadmap on these matters are expected to be finalised by January.

He assured that there were no complications or obstacles regarding the receipt of loans or financial assistance.

The minister said the government would maintain a balance between revenue collection and public expenditure through timely and prudent policy measures, adding that the benefits of these initiatives would ultimately reach the people.