National Board of Revenue (NBR) has seen no improvement in the transparency and accountability of its operations over the past eight years, according to International Monetary Fund (IMF).
Major weaknesses persist in internal audits and oversight, IMF said following a recent assessment conducted using the Tax Administration Diagnostic Assessment Tool.
The study, conducted in October this year, shows that the NBR’s internal audit mechanisms received a score of “D”, indicating a clear lack of progress since the previous assessment in 2017.
The assessment also shows that NBR still lacks an integrated internal audit function, and that existing auditors are not trained in recognised audit methodologies.
Furthermore, it notes the absence of an internal affairs unit to investigate misconduct.
Although a code of ethics has been developed, it has yet to be implemented, the assessment reports.
The IMF team observed that, as the ethics code remains inactive, there is no annual public reporting of disciplinary actions, and no independent internal audit unit exists within the NBR.
To improve performance in this area, the assessment recommends enforcing the ethics code, establishing an independent internal audit function, strengthening ethics enforcement, and introducing regular reporting on disciplinary measures.
Md Azizur Rahman, member (VAT policy) of the NBR, said the indicators used by the IMF team to assess transparency and accountability have already been put into practice.
However, the lack of proper documentation meant these efforts were not reflected in improved scores in the assessment, he told TIMES of Bangladesh.
He further said that the NBR has since taken steps to formally document these measures in line with IMF recommendations.
As part of the initiative, a separate Code of Ethics guideline has already been prepared and will be implemented soon.
Once in effect, Rahman expects improved performance in future assessments.
On external oversight of tax administration, the NBR scored “C+” in both 2017 and 2025, again reflecting stagnation.
The assessment acknowledged that external oversight is provided by the Office of the Comptroller and Auditor General (OCAG), and that audit reports are made public.
However, the report highlights notable gaps, including the absence of an independent tax ombudsman and limited scope for external reviews beyond OCAG audits.
The assessment recommends appointing an ombudsman and expanding external review mechanisms to strengthen accountability.
Syed Aminul Karim, former member (tax policy) of the NBR, said both internal and external audits are vital for ensuring transparency and accountability, but the NBR has made little headway in strengthening these mechanisms.
Developing an effective tax management system, supported by professional expertise, would significantly contribute to improving transparency and accountability within the revenue administration, he added.
The Tax Administration Diagnostic Assessment Tool is an internationally recognised framework that provides an objective and standardised assessment of a country’s tax administration system, including the impact of tax policy on administration.
It evaluates performance across nine critical performance outcome areas, supported by 32 high-level indicators and 55 measured and scored dimensions.
Each dimension is rated on a scale from “A” to “D”, with “A” representing strong alignment with international best practices and “D” indicating serious deficiencies requiring reform.
