The National Board of Revenue (NBR) has suspended instant issuance of online BIN to businesses after it found piles of fake information in the existing e-BIN registration documents.
From now on, the VAT officials will verify online application of the businesses and issue Business Identification Number (BIN) within two-three days.
However, the BIN will be issued online, and the businesses concerned will not have to visit VAT offices for obtaining BIN.
With the suspension of instant BIN issuance, the simplified BIN issuance system has faced a blow, sources said.
Now the businesses will have to spend two-three days or more than that to get a BIN, which is mandatory for operating a business, import-export activities and some other purposes.
The NBR introduced the instant e-BIN issuance system to ease and expedite the BIN issuance process. Some 163,000 businesses have obtained instant e-BIN so far.
However, the VAT Online Project (VOP) has taken the latest decision following instruction of NBR Chairman Md Mosharraf Hossain Bhuiyan.
Talking to the FE, VOP Project Director (PD) Syed Mushfequr Rahman said the NBR field-offices have long been complaining about submitting fake information in the e-BIN form. There was no scope of verification before issuance of BIN.
"Huge garbage of false BIN holders made the VAT officials puzzled. It is not possible to cross-check the information after issuance of BIN."
The VOP will issue a web-based supplementary form to collect additional information from the exiting e-BIN holders, the PD further said.
Although the VAT officials will issue e-BIN after verification, it will be electronically generated. The businesses will not have to visit the VAT offices for BIN, he added.
Meanwhile, many businesses have complained that they are not getting e-BIN during the last one week. Some field-level VAT officials also confirmed that the instant issuance of e-BIN has been suspended.
The NBR introduced e-BIN in March 2017 as part of its groundwork for implementation of the new VAT law. After issuance of e-BIN, many of the businesses allegedly abused the facility.
Officials said VAT commissioners across the country raised the issue, and demanded suspension of instant issuance of e-BIN without verification.
Following their demand, the NBR chairman decided to re-launch the previous verification system prior to issuance of BIN.
VAT officials said some of the traders obtained BIN as manufacturers and availed tax benefit, causing loss of revenue to the government. The VAT officials also faced difficulties in identifying the businesses due to providing fake address and phone numbers.
As per the NBR's recent instruction, the interested businesspeople will have to upload their trade licence, Taxpayers Identification Number (TIN), National Identification Card (NID), Import Registration Certificate (IRC), Export Registration Certificate (ERC), and bank account number etc with BIN applications.
The VAT officials will issue BIN, only if they find that the furnished information are correct after verification.
However, former president of the Dhaka Chamber of Commerce and Industry (DCCI) Abul Kasem said delay in obtaining different services, including VAT registration, is the major cause behind escalation in cost of doing business in the country.
"The system of obtaining BIN should be simplified, so that the businesses can get it easily."
New entrepreneurs will be encouraged to enter the market, if they find simplified process of business, he added.
Another senior member of the NBR said the field-level VAT offices made the BIN issuance system complex, as they want to use their discretionary power.
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