TOWFIQUL ISLAM KHAN

Separating tax policy from tax collection has long been recommended. This idea was strongly proposed in a recent white paper on the economy. About four months ago, the National Board of Revenue’s (NBR) Advisory Committee, which is working on broader reforms for the NBR, submitted an interim report.

This was allegedly prompted by pressure from the International Monetary Fund, as the government wanted to act quickly rather than waiting for the complete reform recommendations.

The committee has reportedly engaged in discussions with stakeholders to prepare their recommendations on this separation. Current NBR staff also recognise the necessity of implementing this separation.

At the end of the day, the decision to dissolve the NBR and the Internal Resources Division into two new entities -- the Revenue Policy Division and the Revenue Management Division -- has sparked controversy, leading to the current debacle.

This situation should not simply be perceived as a power struggle among civil service factions. We must remember the objectives of this reform: to ensure the independence of tax policy from collection, thereby avoiding conflicts of interest, and to promote the government’s economic goals beyond merely mobilising resources by upholding principles of tax justice. To achieve this, the proposed government tax policy agency should be professional and capable.