Publish : 01 Nov 2021, 06:59 PMUpdate : 01 Nov 2021, 06:59 PM
After frequent controversies surrounding the local e-commerce sector, the government has made it mandatory for e-commerce and Facebook-based f-commerce outlets to register with the Ministry of Commerce, within the next two months.
Not only that, but they also have to submit a security deposit with Bangladesh Bank before starting their operations.
The instruction from Prime Minister Sheikh Hasina came at the weekly cabinet meeting on Thursday, Cabinet Secretary Khandker Anwarul Islam told the media.
However businesses and insiders think this would pose new barriers in their ease of doing business in the country.
“Security deposit with Bangladesh Bank will not be a good decision. It will create barriers for this growing sector,” said Sahab Uddin Shipon, vice-president of the e-commerce Association of Bangladesh (e-CAB), told Dhaka Tribune.
Waseen Alim, founder of Chaldal, told Dhaka Tribune: “No other country in the world has such a requirement. This will make conducting online business more difficult, compared to offline ones, and I do not think it will actually solve the issue."
“The problem lies with the intent of entrepreneurs. A deposit of Tk1 crore is no barrier for someone willing to embezzle Tk500 crore. The decision should be reconsidered.
“Bangladesh is already far behind comparable countries in ecommerce. If anything, we need to encourage more honest entrepreneurs to enter this sector by making it more attractive. So far India has attracted $100 per capita investment in ecommerce. Bangladesh has attracted only $1.5 per capita. The government needs to close this gap quickly so that we can unlock Bangladesh economy's potential,” he added.
Officials of other platforms also voiced their concerns about the developments, but requested anonymity.
They said that there were several contradictions or confusion that the ministry needed to clear out before implementing such a framework.
"Why would platforms that are already registered with the government need to pay security deposits after years of operating and paying taxes in Bangladesh?" they countered.
Officials of e-CAB officials also said that the Cabinet Division may have to reconsider the matter of security deposits, as the amount has not been decided yet.
Hafizur Rahman, DG of Commerce Ministry’s WTO Cell, confirming the matter to Dhaka Tribune, said that the businesses were being brought under registration so that they can be traced, even before they indulge in any scams, at the same time providing assurance for businesses to operate with them knowing that they are listed with the government.
He also said they had received the direction, however they are working on a framework with discussions to ensure that it does not become a burden for businesses especially in F-commerce.
Registration made mandatory for all e-commerce platforms
After frequent controversies surrounding the local e-commerce sector, the government has made it mandatory for e-commerce and Facebook-based f-commerce outlets to register with the Ministry of Commerce, within the next two months.
Not only that, but they also have to submit a security deposit with Bangladesh Bank before starting their operations.
The instruction from Prime Minister Sheikh Hasina came at the weekly cabinet meeting on Thursday, Cabinet Secretary Khandker Anwarul Islam told the media.
However businesses and insiders think this would pose new barriers in their ease of doing business in the country.
“Security deposit with Bangladesh Bank will not be a good decision. It will create barriers for this growing sector,” said Sahab Uddin Shipon, vice-president of the e-commerce Association of Bangladesh (e-CAB), told Dhaka Tribune.
Waseen Alim, founder of Chaldal, told Dhaka Tribune: “No other country in the world has such a requirement. This will make conducting online business more difficult, compared to offline ones, and I do not think it will actually solve the issue."
“The problem lies with the intent of entrepreneurs. A deposit of Tk1 crore is no barrier for someone willing to embezzle Tk500 crore. The decision should be reconsidered.
“Bangladesh is already far behind comparable countries in ecommerce. If anything, we need to encourage more honest entrepreneurs to enter this sector by making it more attractive. So far India has attracted $100 per capita investment in ecommerce. Bangladesh has attracted only $1.5 per capita. The government needs to close this gap quickly so that we can unlock Bangladesh economy's potential,” he added.
Officials of other platforms also voiced their concerns about the developments, but requested anonymity.
They said that there were several contradictions or confusion that the ministry needed to clear out before implementing such a framework.
"Why would platforms that are already registered with the government need to pay security deposits after years of operating and paying taxes in Bangladesh?" they countered.
Officials of e-CAB officials also said that the Cabinet Division may have to reconsider the matter of security deposits, as the amount has not been decided yet.
Hafizur Rahman, DG of Commerce Ministry’s WTO Cell, confirming the matter to Dhaka Tribune, said that the businesses were being brought under registration so that they can be traced, even before they indulge in any scams, at the same time providing assurance for businesses to operate with them knowing that they are listed with the government.
He also said they had received the direction, however they are working on a framework with discussions to ensure that it does not become a burden for businesses especially in F-commerce.