ISLAMABAD, July 29, 2025 – The Nowshera Tax Bar Association has lodged a formal complaint with the Federal Tax Ombudsman (FTO) over the recently imposed QR code scanning requirement for logging into the IRIS portal and the mandatory integration of business systems with the Federal Board of Revenue (FBR).
Muneeb Ahmad, Advocate High Court and President of the Nowshera Tax Bar, emphasized that while the FBR’s efforts to enhance digital security are appreciated, these measures have created severe barriers for tax consultants, tax bar members, and ordinary taxpayers. The tax bar urged the FTO to take suo motu notice and suspend these requirements until practical solutions are implemented.
The complaint outlined multiple challenges:
1. Even e-intermediaries not registered under sales tax are being forced to scan QR codes.
2. Users attempting login from a mobile phone cannot scan the QR code from the same device, necessitating a second device.
3. Overseas taxpayers cannot receive SMS from Pakistan.
4. Users with unupdated profiles cannot log in, even if they have valid credentials.
5. Many professionals operate on desktop systems without mobile access.
6. Large corporations and retail chains with multiple sales tax registrations struggle with daily QR scanning.
7. Numerous taxpayers lack smartphones, internet, or reliable network signals – particularly in remote areas like Waziristan.
8. Corporate setups often have the registered mobile number with a director who may be unavailable during deadlines.
9. Authorized consultants cannot access QR codes, barring them from filing returns.
10. Even in the U.S., OTPs are only required once unless IP address changes – flexibility that the FBR system lacks.
To resolve the issue, the tax bar proposed several remedies:
• Fully activate e-intermediary access under Section 52A of the Sales Tax Act, 1990.
• Introduce triple-channel QR delivery (via SMS, WhatsApp, and email).
• Allow QR-free access for low-risk activities and same-IP logins.
• Enable multi-user access for corporate tax filers with separate credentials.
• Introduce a 60-day grace period for taxpayers to update contact information before enforcing QR code logins.
Furthermore, the tax bar has requested the FBR to extend the deadlines for filing Sales Tax Returns for May and June 2025 to accommodate those currently facing technical hurdles.
In addition to QR login concerns, the bar highlighted serious issues with the current online integration requirements under the Sales Tax Act. These include:
• Violation of Article 18 of the Constitution, which guarantees free trade.
• Financial burdens from hardware, software, and recurring charges.
• Data privacy risks due to forced use of third-party systems.
• Complexity of integration manuals, only understandable by IT professionals.
• Absence of a direct FBR dashboard for tax filers.
• Harassment by FBR field staff conducting invoice checks on roads.
The Nowshera Tax Bar urged the FTO and FBR to adopt a more inclusive, simplified, and secure approach to digital compliance. According to the tax bar, the current measures are not only impractical but may also deter tax compliance rather than enhance it.