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E-com firms reluctant to obtain digital ID

REZAUL KARIM | August 20, 2024 00:00:00


Local e-commerce companies are reluctant to obtain digital business identification (DBID) because of technical and rules-related complexities, sources said.

Only 2.0 per cent of e-commerce platforms under the e-Commerce Association of Bangladesh (e-CAB) have applied for DBID. Of the number, about 14 per cent received the identification, according to the e- CAB.

Presently, there are 2,800 members registered with the association.

The rate of application for receiving DBID is lower due to some existing policies and technical issues. To resolve issues, the e- CAB has placed a proposal many times for including it in the first step of approving DBID so that the DBID issuing activities to e-CAB members will be expedited as well as popular, accurate and easy, according to the sector insiders.

They believe that the rate of taking DBID will increase if the government offers some facilities, including tax incentive.

They have suggested organising educational programmes, arranging workshop and seminar.

When contacted, e-CAB acting president Mohammad Sahab Uddin said this system cannot give any special offer. So, receiving trend to DBID by the existing e-commerce companies is lower.

The DBID does not yet have the status of an alternative to a trade license and is not conducive to getting a bank account or loan. Its application process is also complicated. For this, the rate of rejection is extremely high, he added.

The then government approved the Digital Business Identification (DBID) Registration Guidelines 2022.

The government on February 06, 2022 introduced the DBID system to bring discipline in the crisis-ridden e-commerce sector of the country.

The e-commerce companies will not be able to run their businesses without obtaining the identification certificate from the authorities concerned-Registrar of the Joint Stock Companies and Firms (RJSC).

The DBID applications have been rejected due to various reasons. Sometimes, the applicant does not know the exact reason, the e-CAB president also said, adding that the applicants who are rejecting, they are discoursed to apply again.

He has suggested including local IT associations in the process to solve this problem.

To make the DBID into a momentum, Mr Sahab has also recommended, adding some value addition, including recognizing the DBID as an alternative to trade license, which can be helpful in getting bank loans, he added.

The e-CAB top boss also opined to provide tax incentives or subsidies facility for DBID holders. Besides, necessary workshops, training programmes can be arranged to enhance awareness about the issue.

Various initiatives have been taken in the wake of a number of scandals by dubious e-commerce platforms such as Evaly, Eorange, Dhamaka Shopping, Sirajganj Shop, etc.

Until date, some 1,240 companies received DBID out of 8852 applications, according to DBID website.

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