Bangladesh creates divisions to modernize tax administration, boost revenue collection

DHAKA, May 13 (Xinhua) -- The Bangladeshi interim government has created two new divisions by abolishing the National Board of Revenue (NBR) in an apparent move to modernize tax administration and boost revenue collection.

An ordinance in this regard was issued on Monday midnight, saying that two divisions named Revenue Policy and Revenue Management have been created.

The ordinance states that the Revenue Policy Division will monitor the implementation of tax laws while the Revenue Management Division will mainly look into the revenue collection.

Bangladesh's Finance Adviser Salehuddin Ahmed Tuesday said there will be no effect on revenue collection due to the creations of the new divisions.

The restructuring reportedly follows a key condition set by the International Monetary Fund to separate tax policy from administration.

The Washington-based lender has long pushed for tax reforms to raise Bangladesh's tax-to-GDP ratio, one of the lowest in Asia.