NBR split may complete before Feb 12 election: finance adviser

The interim government expects to complete the long-delayed bifurcation of the National Board of Revenue before the February 12 general election, Finance Adviser Salehuddin Ahmed said today.

"There is still time. It hasn't happened yet, but you will see whether it is completed by January or February 12," he said.

Ahmed made the comments while replying to a question from reporters at the Secretariat.

The adviser had earlier assured that the split would be completed by the end of last December.

He, however, acknowledged that despite earlier assurances, the separation could not be finalised by the end of 2025, but said the process was still very much on track and awaiting completion of some remaining formalities.

The reform aims to divide the NBR into two separate bodies: one for tax policy and another for revenue collection and administration.

This reform is highly anticipated by development partners, economists, and business leaders to enhance efficiency, transparency, and revenue mobilisation.

The move has, however, triggered prolonged unrest within the revenue authority, leading to protests, administrative disruptions, and suspension orders that continue to affect the country's fiscal administration.

The dispute initially began on May 12, 2025, when the interim government issued the Revenue Policy and Revenue Management Ordinance, 2025, dissolving the NBR, founded in 1972, and replacing it with the Revenue Policy Division and the Revenue Management Division under the finance ministry.

While the government described the change as essential to modernising the tax system, NBR officials opposed the ordinance, citing a lack of consultation and concerns over diminished roles for tax and customs cadres.

The prolonged unrest at the NBR has finally subsided after the government took tough measures, including forced retirements, suspensions, transfers, and anti-corruption operations.