NBR expands customs and VAT wings

The National Board of Revenue (NBR) has launched a major administrative overhaul and expansion of its customs and VAT wings to broaden the tax base and boost revenue collection.

The Internal Resources Division (IRD) issued a notification on October 14 announcing the establishment of 12 new commissionerates, customs houses, and specialised units under the NBR.

The move also includes the creation of 3,597 new posts, including 373 cadre and 3,224 non-cadre positions, aimed at enhancing institutional capacity across the customs and VAT departments.

"The expansion is part of a broader effort to promote self-reliance in the national economy through increased revenue collection, improve service delivery for a business-friendly environment, and make the indirect tax system more dynamic and effective," said the IRD in a statement.

The reform initiative, based on proposals from the NBR, received administrative approval from the Ministry of Public Administration, the Finance Division, and the Cabinet Division before the IRD issued the final order.

Under the new structure, the expansion will be implemented in three phases, establishing five new VAT commissionerates, four new customs houses, and three specialised offices.

The plan also includes the expansion of existing units, decentralisation of customs and VAT intelligence operations, and scaling up customs activities at Dhaka airport's third terminal.

Officials expect the restructuring to improve the efficiency and capacity of indirect tax collection, increase the tax-to-GDP ratio, facilitate trade and investment, and ultimately accelerate the country's overall economic growth.