The government’s digital business identification (DBID) registration move for e-commerce and f-commerce organizations is facing setbacks following the official launch of the service through an app around two weeks back.
Lack of skills within the agency in charge of issuing the DBID through the MyGov.bd app had rendered the registration process ineffective since its launch, refraining anyone from accessing the service.
The Registrar of Joint Stock Companies and Firms (RJSC), an agency under the Commerce Ministry, that has been given the responsibility of issuing the ID, was not briefed on how to provide the service.
However, according to AHM Safiquzzaman, additional secretary, Ministry of Commerce and head of Central Digital Commerce Cell, a team from Aspire to Innovate (A2i) of the Prime Minister's Office had already carried out a capacity enhancement training with relevant officials of RJSC on Sunday to overcome the issue.
Furthermore, despite attempts of the government in easing the registration process for businesses while ensuring standardization, a degree of skepticism exists amongst small-scale businesses, although welcomed by a medium as well as big players.
Big players like Chaldal, who have been operating for years in compliance with all sorts of standards, have already received its DBID on the launch day, however, newcomers such as that of GreenGrocery are still in process, while many small f-commerce entrepreneurs are highly skeptical because of matters involving taxation as well as acquiring a trade license.
"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 Farjana Rahman, owner of a Facebook-based business BoughtNext and Beautiful, who is unsure if she will register and continue the business despite expressing willingness to acquire a trade license if needed.
She added that the government initiative will help expand the e-commerce customer base with enhanced buyer confidence, and trade licenses might actually help to acquire business travel visas.
Sources at the Commerce Ministry explained that the National Board of Revenue (NBR) had proposed to make VAT registration number, Business Identification Number (BIN) and Tax Identification Number (TIN) mandatory at the time of DBID registration, but, the ministry did not agree to the condition thinking this will discourage Facebook-based small entrepreneurs to register.
However, to obtain a DBID from the website mygov.bd within 30 days, free of cost, some vital documents such as photos, relevant NIDs of the applicant, company chairman and other directors, as well as a trade license is mandatory.
“Small businesses such as ours do not have trade licenses, and if acquiring one was easy and not costly for people like us, we would already have it. It is an added burden,” f-commerce based entrepreneur Nobina Akhter, owner of Nobin food supply that produces and delivers office lunch, told Dhaka Tribune.
Prime Minister Sheikh Hasina's Private Sector Development Advisor Salman F Rahman at the launch event of DBID had previously said that an inter-ministerial meeting will be held regarding the issue of easing the process of acquiring TINs, trade licenses, opening bank accounts and getting bank loans for the e-commerce sector.
Furthermore, according to A2i a guideline or policy (SOP) will be needed to provide full service in regards to registration which has not yet been finalized.
So far a draft of the SOP has been prepared and it will be soon, Commerce Ministry sources said.
According to the E-Commerce Association of Bangladesh (eCAB), the number of digital commerce organizations listed by them is 1,609, while the number of F-commerce exceeds 200,000.
Due to a lack of registration, Facebook-centric small entrepreneurs cannot open bank accounts. However, in the future, DBID will act as a sort of collateral for getting a bank account.