Bangladesh: Govt workers extend strike against Yunus' tax reforms, cost upto $163 mn in uncollected duties daily

Bangladeshi security forces surrounded the headquarters of the country’s national tax authority Sunday (May 25) as employees extended a two-week strike protesting controversial reforms by the interim government, reportedly costing millions in uncollected taxes every day.

The government’s order to overhaul the powerful National Board of Revenue (NBR) has triggered widespread outrage among its workers, from rank-and-file employees to senior management.

“Tax, customs, and VAT – all three wings will observe a complete work abstention from Monday,” Joint Tax Commissioner Monalisa Saha Sushmita told journalists outside the NBR headquarters in Dhaka, where police and armed personnel had gathered.

Bangladesh has been embroiled in turmoil since student-led protests ousted former Prime Minister Sheikh Hasina in August 2024, ending her 15-year tenure. The interim administration, headed by Nobel laureate and microfinance pioneer Muhammad Yunus, has pursued extensive government reforms aimed at curbing corruption and inefficiency.

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The May 12 directive proposed dividing the influential revenue-collecting NBR into two entities, with external civil servants appointed by the government to manage the new divisions. Protesters see this move as undermining the existing authority and disrupting established practices.

Sushmita claimed the ongoing strike had severely impacted economic activity, stating, “imports and exports will also be halted,” and estimated lost tax revenues at between $122 million and $163 million daily since the protests began. Those figures, however, could not be independently confirmed.

The unrest poses additional challenges to Bangladesh’s critical textile and garment sector, which represents approximately 80 per cent of national exports and has struggled to recover following last year’s political instability.

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Separately on Sunday (May 25), hundreds of civil servants protested another government directive granting authorities expanded powers to dismiss public employees for disciplinary reasons.

“If the government proceeds with the amended ordinance, the interim government will face severe criticism,” warned Mohammad Nazrul Islam, spokesperson for the Inter-Ministerial Employees Association.

With inputs from agencies