Karachi, December 24, 2024 – Tax bars across Pakistan have strongly criticized the recently introduced password expiry policy by the Federal Board of Revenue (FBR), urging its immediate revocation. The policy, which mandates password changes every 60 days for users accessing the IRIS tax portal, has been denounced as an unnecessary complication for taxpayers and practitioners alike.
Under the FBR’s policy, users are required to reset their passwords using the ‘Forgot Password’ or ‘Change Password’ options once their credentials expire. However, leading tax bars argue that this measure creates undue inconvenience without delivering substantial benefits.
The Lahore Tax Bar Association (LTBA), in a letter addressed to the FBR, highlighted the impracticality of this policy. “Income tax returns are filed annually, making a 60-day password expiration cycle redundant,” stated the LTBA. It further criticized the policy for imposing undue hardship on taxpayers and practitioners, diminishing user convenience, and offering no tangible improvements to system security. The LTBA urged the FBR to reconsider this policy to ensure a smoother and more user-friendly experience for all stakeholders.
Similarly, the Sialkot Tax Bar Association expressed its concerns in a formal communication to the FBR chairman. While acknowledging the intention to enhance cybersecurity, the association noted the absence of a transparent rationale or detailed guidelines for implementing the policy. “The policy, as it stands, undermines taxpayer confidentiality and the fundamental right to privacy,” it emphasized. The Sialkot Tax Bar also highlighted the disproportionate burden placed on non-resident taxpayers, who often face greater challenges in complying with frequent password resets.
The Multan Tax Bar Association raised additional objections, citing the low levels of digital literacy among a significant portion of Pakistan’s taxpayers. “Many taxpayers lack the technical knowledge to reset passwords, compounded by unreliable internet connectivity in various regions,” it stated. The association also pointed out the operational difficulties stemming from system downtimes and failures in receiving one-time passwords (OTPs) via email or SMS. Such issues, it argued, make compliance with the 60-day password reset requirement virtually unfeasible for a large segment of taxpayers.
Moreover, the Multan Tax Bar noted that the password reset process is often cumbersome and time-intensive, detracting from the efficiency of tax filing. “This policy exacerbates the challenges faced by already compliant taxpayers and erodes trust in the digital tax system,” it asserted.
In unison, tax bars across the country have urged the FBR to reconsider the policy, arguing that a more balanced approach is needed—one that ensures system security without imposing undue burdens on taxpayers.