Govt Scraps NBR, Creates Two Separate Revenue Divisions

The government has abolished the National Board of Revenue (NBR) and formed two new divisions—Revenue Policy and Revenue Management—to oversee the country’s revenue affairs. The decision was formalized through a confidential ordinance issued at midnight on Monday, May 12.

Despite protests from BCS Income Tax and Customs cadre officers, the interim government moved forward with the much-debated 'Revenue Policy and Revenue Management Ordinance'. The ordinance introduces only minor changes to the scope of the Revenue Policy Division’s responsibilities while assigning core revenue collection duties to the Revenue Management Division.

Both divisions will remain under the Finance Ministry, with the Revenue Policy Division tasked with monitoring tax law implementation and overall revenue performance. It will also oversee the Customs, Excise and VAT Appellate Tribunal and the Income Tax Appellate Tribunal.

The ordinance allows the appointment of any qualified government officer, including from the administration cadre, as secretary or senior secretary of either division—an aspect that has triggered weeks of protests from NBR officials demanding the exclusion of admin cadre from key roles.

According to the law, positions in the Revenue Policy Division may be filled by officers experienced in taxation, economics, business administration, statistics, auditing, law, and public administration. The Revenue Management Division’s administrative roles will draw from the BCS (Administration) cadre and existing revenue department personnel.

The government justifies the move by citing the need to separate policy formulation from tax collection operations to enhance transparency, accountability, and efficiency in revenue management.