Businesses dally in e-BIN registration
Only one-fourth of the regular return filer firms have so far re-registered online, an important cog for the smooth functioning of the automated VAT system that will take effect next month.
From July 1, firms need the 9-digit electronically generated Business Identification Number to run their operations, including import and export.
The existing 11-digit BIN will be invalid once the new VAT comes into effect, so firms need to re-register online for the e-BIN, which started at the end of March.
Of the 36,858 firms that regularly file returns, 9,768 firms have signed up for the e-BIN.
This prompted the revenue authority to direct its field offices to ensure re-registration by all by June 15.
“Overall, the numbers of return filers and re-registration are not satisfactory,” said the National Board of revenue in a letter sent to its field offices on June 4.
“Revenue collection may also suffer,” it said, while urging the field level VAT offices to encourage irregular return filer firms.
The revenue authority also directed the field offices to update the NBR higher ups, including its chairman, every evening by e-mail on this front.
The NBR also formed a four-member team to monitor the progress of a checklist prepared to ensure that the groundwork for the new law has been laid properly before its implementation. The new law envisages a single and uniform 15 percent VAT instead of the multiple rates under the VAT Act 1991.
Framed at the prescription of the International Monetary Fund, the law was supposed to be implemented from July 2015.
But it was delayed in the face of opposition from businesses who have been demanding continuation of multiple rate of VAT on the ground that the application of single rate will hurt many small and medium firms and fuel living costs.
The NBR maintains that prices will not rise in most cases because of the scope for firms to get input tax credit and exemptions to many primary and essential commodities.