Large companies that are producing backward linkage products are facing difficulties in obtaining business identity.
The National Board of Revenue issues central Business Identification Numbers.
In the 1991 Vat law, companies that maintain a central accounts system were enjoying the central registration facility.
However, the complexities erupted after the new Vat law, in place from July 1, 2019, has offered the central registration facility for the manufacturers that are producing 'similar and identical' products.
Some companies, especially from the pharmaceuticals sector, have raised the complaints after the field-level Vat offices declined to issue central registration in their favour.
The Bangladesh Association of the Pharmaceuticals Industries wants the NBR to address the issue.
Square Pharmaceuticals also urged the revenue board to issue a central Bin for its different units that are manufacturing packaging materials, bottles as backward linkage for drugs.
As per the registration rules, the businesses are allowed to obtain central Bin for identical and similar categories of products.
A senior member of the NBR said the central Bin rules have made it clear which categories of businesses are allowed to obtain central Bin for their products.
As per the rules, issued last month, the Vat offices will not be able to issue central Bin for all products of a company despite maintenance of a central account.
He said under the rule, a manufacturing company will have to obtain a Bin and submit Vat returns separately for its backward linkage units.
In a letter to the NBR, Square it has applied for obtaining the central registration on July 21, 2019, but it has not got the registration yet.
The company has submitted Vat returns for the month of July as centrally registered business using its previous Bin, it said.
It has also paid the aggregate amount of payable Vat for its all units to the Large Taxpayers Unit, the letter said.
Vat officials said the company produces different raw and packaging materials, including pet bottle, cap, Active Pharmaceuticals Ingredients, printing foil in its different units, which are not identical products.
Without having specific guidelines from the NBR, the Vat offices will not be able to issue central Bin to those companies.
Officials of the company could not be reached for comments.
The industry group, in a separate letter to the NBR, said regular business activities of the pharmaceuticals companies, including import-export, local purchase, supply, banking activity are being hampered due to complexities over the issuance of Bin.
Another Vat commissioner said the terminology 'identical and similar products' was not in the 1991 law.
The central registration rules have incorporated the new term to check Vat evasion through selling or transferring products from one unit to another unit of a business entity.
Vat expert Dr Abdur Rouf said the terminology is not consistent with the basic spirit and philosophy of the central registration.
"Companies having a registration of the Register of Joint Stock Companies, a Taxpayers Identification Number (Tin) and marinating accounts centrally should be allowed to obtain a central Bin," he said.
The process of obtaining central Bin should be simplified to facilitate businesses and ease the doing business in the country, he added.
