Reforms in Revenue Administration (RIRA) Phase II

Maxwell Stamp was commissioned to implement a four-year project to provide technical assistance to National Board of Revenue (NBR) of Bangladesh. The aim of the project was to support the integration of tax from all areas, both direct and indirect. This included the future formulation of taxpayer identification numbers (TINs) and the establishment of a Large Tax Payer Unit. One of the key focuses of the project was the development of common policies, structures, operations and procedures across all related institutions.  The NBR itself was transformed into a more efficient revenue service, to formulate a clear and explicit strategy and market this effectively to both the NBR staff and taxpayers.  This involved:

• a thorough diagnostic review of systems, processes and procedures enabling a strategy for comprehensive reform to be developed improving the efficiency & effectiveness of the NBR;
• enabling effective management of the reform process; and
• setting out priorities for increasing NBR efficiency in regards to identifying key bottlenecks and constraints and taking measures to address these.
• To meet the aims of the project the following operational objectives were established:
• Reduction of NBR compliance costs, increasing their efficiency, improving taxpayers’ perception of their role and to the design and implementation of a strategy to increase voluntary compliance of taxpayers through taxpayer education;
• Provision of analysis of the implications tax structure in the NBR, used to identify ways to simplify tax policy and the laws that enact the tax policy to demonstrate to the Government the case for reform in the medium term;
• The establishment of an ongoing monitoring process to provide important information to NBR management regarding the success and constraints to the strategy;
• Adoption of an integrated approach to increase tax revenues; and
• Defined objectives, set targets and monitored the NBR’s revenue collection performance.