NBR expands customs, VAT administration to widen tax network

In a major administrative reform aimed at widening the tax net and boosting revenue collection, the NBR has expanded and reorganized its Customs and VAT wings, creating 12 new commissionrates, customs houses, and specialized units.

According to a government order issued by the Internal Resources Division yesterday, the reform initiative involves both restructuring and manpower expansion. A total of 3,597 new positions have been created-373 cadre posts and 3,224 non-cadre posts-across existing and newly established commissionrates, customs houses, and specialized units, said a NBR press release today.

The NBR said they seeks to enhance revenue mobilization, promote economic self-reliance, improve service quality, and create a more business-friendly environment through a more dynamic and efficient indirect tax system.

The reform and expansion plan, proposed by the NBR, received necessary administrative approvals from the Ministry of Public Administration, Finance Division, and the Cabinet Division before the final order was issued by the Internal Resources Division.

The new structure, a total of five new VAT commissionrates, four new customs houses, and three specialized offices will be established in three phases.

In addition to setting up these new units, the government order also provides for the expansion of existing commissionrates, customs houses, and specialized wings. It includes arrangements for customs operations at Dhaka International Airport's third terminal as well as the decentralization and expansion of customs and VAT intelligence activities.

NBR expects the administrative reform, reorganization, and expansion of the Customs and VAT wings will significantly strengthen institutional capacity in indirect tax collection, increase the tax-to-GDP ratio, encourage investment through trade facilitation, and accelerate the country's overall economic growth.