From bike to ornament, identification must for any online sale
The move aims at regaining people’s trust in the industry
Aimed at reigning in irregularities and boosting consumer confidence in the ecommerce sector, the government has started the issuance of digital business identification (DBID) for ecommerce platforms.
The move, announced on Sunday, comes at a time when the industry's reputation is tainted by massive embezzlement schemes by a few companies in recent times.
The commerce ministry, in its announcement made it clear that without obtaining the DBID, no company will be allowed to sell products through websites, social media platforms or any other applications.
While giant ecommerce platforms welcomed the move, small-scale entrepreneurs expressed scepticism over the development.
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"If the government imposes VAT or any taxes on f-commerce business that may affect a large group and many may end up closing down their businesses," said Bilkis Sultana, owner of Facebook based clothing (brand) Sultana's Dream.
She, however, added that the government initiative will help expand e-commerce customer base as buyers will get confidence in sellers with the DBID.
Clearing the confusion over possible imposing of VAT, commerce ministry officials told The Business Standard that at the time of DBID registration, the National Board of Revenue (NBR) had proposed to make VAT registration number, Business Identification Number (BIN) and Tax Identification Number (TIN) mandatory. The ministry did not agree to the condition thinking this will discourage Facebook-based small entrepreneurs to register.
Tax and VAT has nothing to do with obtaining DBID registration from the Ministry of Commerce, they clarified.
One additional secretary at the ministry, however, pointed out that the requirement to have a BIN and TIN falls under the authority of the NBR and if they choose to collect taxes from registered ecommerce businesses in the future, the ministry will have no say.
During the inauguration of DBID issuance, Commerce Minister Tipu Munshi said, "Although a few companies deceived their clients in the name of doing e-commerce business, thousands of companies are doing good business. DBID has been introduced so that their business can flourish further."
He also added that through this move, all kinds of e-commerce are being brought under one platform.
Hafizur Rahman, director general of the WTO Cell of the commerce ministry, told The Business Standard, "Registered companies will upload the DBID number obtained from the ministry on their website or Facebook page. This will allow buyers to learn that the trader is under government monitoring."
AKM Fahim Mashroor, former president of BASIS, told The Business Standard that the authorities should ensure an easy registration process.
He also remarked that the Facebook-based small entrepreneurs will lose businesses if VAT is imposed upon them.
Salman F Rahman, prime minister's private industry and investment adviser, said, "This platform will support small and women entrepreneurs. An inter-ministerial meeting will be held to ensure such entrepreneurs do not face any problem in getting TIN, trade license, opening bank account and getting bank loan."
Junaid Ahmed Palak, state minister for information and communication technology, thinks the DBID will further strengthen the online-based businesses.
Many industry insiders think that the commerce ministry does not have the capability to shut down ecommerce platforms operating without DBID.
Asked on the matter, a ministry official said, "We will issue a notification making the use of DBID mandatory of e-commerce pages. Ecommerce platforms without the DBID will be banned and consumers will be recommended to reject those companies."
The Registration Process
E-commerce businesses can obtain the DBID through the myGov app of the Registrar of Joint Stock Companies (RJSC), which is operated under the commerce ministry.
After applying the applicants will receive the certificate in a mail as well as a text message to their cellphone number with a link, through which the certificate can be downloaded.
Officials said, there is no fee to obtain the DBID and the ministry plans to bring all digital businesses under registration within the next one year.
On Sunday a total of 11 companies – Chaldal Ltd, Diabetics Store, Rokomari.com, Ajkerdeal, Shajgoj Ltd, JaChai.com, Trina's Closet, Nourin's Mirror, Akhi's Collection (facebook), Nithan (facebook) and Momo fanush (facebook) – obtained the DBID.
