PESHAWAR: The Peshawar Tax Bar Association has called on the Federal Board of Revenue (FBR) to reconsider and remove the mandatory password expiry condition for taxpayer portals. This appeal aims to alleviate the difficulties faced by taxpayers and practitioners in managing their compliance obligations.
In a letter addressed to the FBR chairman, the Peshawar Tax Bar Association highlighted the challenges associated with the 60-day password expiry policy. While acknowledging the FBR’s intent to enhance security measures, the association emphasized the need to balance security with practicality.
Challenges Identified by the Peshawar Tax Bar
1. Limited Awareness and Technological Constraints: A significant portion of taxpayers in Peshawar and across Pakistan lack digital literacy, making it difficult for them to reset passwords regularly. Frequent internet disruptions exacerbate this issue, particularly in regions with limited connectivity, including Peshawar.
2. Increased Burden on Tax Practitioners: Tax practitioners in Peshawar are already managing extensive workloads, including responding to notices under various sections of the Income Tax Ordinance, such as Sections 147, 122, 177, and 161. The added responsibility of monitoring password compliance for multiple clients has become an unnecessary strain on their resources.
Tax solutions
3. Systemic Challenges in Password Management: Frequent system downtimes and delays in receiving OTPs via email or SMS make the password reset process frustrating. These technical issues have disproportionately impacted taxpayers in Peshawar, many of whom are already diligently meeting their filing requirements.
4. Adverse Impact on Compliant Taxpayers: The password expiry policy places undue stress on registered taxpayers in Peshawar who actively comply with FBR regulations. Instead of facilitating compliance, the policy creates additional hurdles, discouraging taxpayers from engaging with the system.
Proposed Recommendations from Peshawar Tax Bar To address these concerns, the Peshawar Tax Bar Association has proposed the following measures:
• Eliminate the mandatory 60-day password expiry condition.
• Introduce user-friendly and efficient password recovery mechanisms.
• Provide dedicated facilitation measures for tax practitioners managing large client portfolios in Peshawar and other regions.
By addressing these challenges, the Peshawar Tax Bar believes the FBR can significantly improve the ease of doing business in Peshawar and strengthen its image as a facilitative institution. This approach would also allow the FBR to focus on expanding the tax net by incorporating new taxpayers rather than overburdening the existing ones.
