NOWSHERA: The Federal Board of Revenue’s (FBR) recent push for digital security and compliance, involving mandatory QR code scanning for IRIS portal logins and business system integration, has hit a major roadblock.
The Nowshera Tax Bar Association has lodged a formal complaint with the Federal Tax Ombudsman (FTO), arguing that these measures, while well-intentioned, are creating “severe barriers” for tax consultants, taxpayers, and bar members alike.
Muneeb Ahmad, Advocate High Court and President of the Nowshera Tax Bar, emphasized that the new requirements are proving impractical and are hindering, rather than facilitating, tax compliance. The tax bar has urged the FTO to take suo motu notice of the situation and suspend these requirements until more practical and inclusive solutions can be implemented.
The complaint meticulously outlines a litany of challenges faced by various users:
Even e-intermediaries not registered under sales tax are being forced to scan QR codes.
The system’s design prevents users from scanning a QR code from the same mobile device they are using for login, necessitating a second device.
Overseas taxpayers are unable to receive the necessary SMS messages from Pakistan.
Users with unupdated profiles are locked out, despite having valid credentials.
Many tax professionals operate on desktop systems without immediate mobile access.
Large corporations and retail chains with multiple sales tax registrations face daily logistical nightmares with QR scanning.
A significant number of taxpayers, particularly in remote areas like Waziristan, lack smartphones, stable internet access, or reliable network signals.
In corporate setups, the registered mobile number often belongs to a director who may not be available during critical filing deadlines.
Authorized consultants are frequently barred from accessing QR codes, preventing them from filing returns on behalf of clients.
The FBR system’s inflexibility contrasts sharply with more user-friendly international practices, such as the U.S. where OTPs are typically required only once unless an IP address changes.
To mitigate these issues, the Nowshera Tax Bar has proposed several constructive remedies. These include fully activating e-intermediary access under Section 52A of the Sales Tax Act, 1990; introducing triple-channel QR delivery via SMS, WhatsApp, and email; allowing QR-free access for low-risk activities and same-IP logins; enabling multi-user access for corporate tax filers with separate credentials; and implementing a 60-day grace period for taxpayers to update contact information before enforcing QR code logins.
Furthermore, the tax bar has called on the FBR to extend the deadlines for filing Sales Tax Returns for May and June 2025, acknowledging the significant technical hurdles many taxpayers are currently facing.
Beyond the QR login concerns, the complaint also highlights serious issues with the mandatory online integration requirements under the Sales Tax Act. These include allegations of violating Article 18 of the Constitution, which guarantees free trade, and imposing significant financial burdens through hardware, software, and recurring charges. Concerns were also raised about data privacy risks due to the forced use of third-party systems, the overwhelming complexity of integration manuals understandable only by IT professionals, the absence of a direct FBR dashboard for tax filers, and reported harassment by FBR field staff conducting invoice checks on roads.
The Nowshera Tax Bar has urged both the FTO and FBR to adopt a more inclusive, simplified, and secure approach to digital compliance. They argue that the current measures are not only impractical but may ultimately deter tax compliance rather than enhance it.
