The government has issued an ordinance dissolving the National Board of Revenue (NBR) and establishing two new divisions—the Revenue Policy Division and the Revenue Administration Division—disregarding objections from BCS Income Tax and Customs cadre officers.

The ordinance, issued late Monday night (May 12), introduces only minor changes to the scope of the Revenue Policy Division’s functions. Under the new structure, administrative posts in the Revenue Administration Division will be filled by officers from the admin cadre, as well as from the Income Tax and Customs cadres.

The Revenue Policy and Revenue Administration Ordinance, 2025 was approved in the Advisory Council on April 17. Since then, officials and employees across all levels of the NBR—including those from the Income Tax and Customs departments—have been staging protests, demanding the withdrawal of the ordinance. They submitted seven key recommendations on behalf of their respective cadres.

BCS Income Tax and Customs cadre officers claim their opinions were not solicited prior to the issuance of the ordinance.

According to the ordinance, the Revenue Policy Division will oversee and evaluate the enforcement of tax laws and the status of tax collection—replacing the earlier term “monitor” with “evaluate.” Meanwhile, the Revenue Administration Division will have its administrative subdivisions staffed by a mix of officers from the admin, Income Tax, and Customs cadres, as well as field-level employees.

The ordinance further states that the existing manpower of the former NBR will be transferred to the Revenue Administration Division. From this pool, personnel may be assigned to the Revenue Policy Division as needed. Additionally, the Internal Resources Division (IRD) will be dissolved, with its personnel absorbed into the Revenue Policy Division.