On 12 May, the interim Government of Bangladesh issued the Revenue Policy and Revenue Management Ordinance 2025 (the Ordinance), introducing significant changes in the country’s tax governance framework. This marks a bold move toward enhanced transparency, efficiency, and alignment with international standards. The Ordinance will come into effect upon publication of a gazette notification in this regard.
Key highlights of the Ordinance include:
Institutional Overhaul
The Internal Resources Division (IRD) and the National Board of Revenue (NBR) operating under it have both been abolished. In their place, two new autonomous entities have been established under the Ministry of Finance: Revenue Policy Division (RPD) and Revenue Management Division (RMD).
Division of Responsibilities
The RPD will be staffed with experts in law, taxation, and public finance and will be responsible for:
- Developing tax policies and rational tax structures
- Reviewing exemptions and driving legal reforms
- Managing tax treaties and overseeing the various tax tribunals
On the other hand, the RMD will be staffed with the existing officers of the NBR and will be responsible for:
- Administering tax collection and enforcing compliance
- Handling primary tax appeals and taxpayer services
- Implementing international tax obligations
- Training and deploying skilled tax officers
The Ordinance aims to achieve a few key objectives.
First, transparency will be pursued by clearly separating tax policy-making from tax administration, eliminating conflicts of interest, and enhancing accountability within the fiscal system.
Second, efficiency will be targeted through the specialization of functions—policy formulation and strategic oversight are now distinct from day-to-day operations such as tax collection and enforcement. This division is expected to streamline decision-making, reduce bureaucratic redundancies, and improve responsiveness to taxpayers.
Finally, the reform will promote alignment with global best practices by harmonizing Bangladesh’s tax governance framework with international norms and treaty obligations.
For a copy of the Ordinance, please click in download button below.
