Password change every two months: LCCI voices concern on FBR’s new policy

LAHORE: The Lahore Chamber of Commerce and Industry has raised concerns regarding the Federal Board of Revenue’s newly introduced policy requiring registered taxpayers to change their passwords every two months.

“LCCI views this policy as a potentially disruptive measure that could impose considerable burdens on the business community, particularly small and medium-sized enterprises (SMEs) and lead to technical complications within the IRIS system.”

In a letter to Chairman Federal Board of Revenue Rashid Mahmood Langrial, President of the Lahore Chamber of Commerce and Industry Mian Abuzar Shad expressed the Chamber’s concerns over the implementation of frequent password changes. While acknowledging the importance of securing online transactions and safeguarding sensitive taxpayer information, he said that the frequency of required password changes could create challenges for taxpayers, especially those who are already struggling with the complexities of the IRIS system.

LCCI president further added that many small businesses find the IRIS system difficult to navigate and may lack the necessary resources or technical expertise to manage such frequent password changes. These businesses, which form the backbone of Pakistan’s economy, are already contending with numerous operational challenges in the face of the country’s ongoing economic difficulties. The added requirement of frequently changing passwords could further strain their capacity to meet tax filing deadlines and maintain smooth business operations.

Mian Abuzar Shad said that another key concern highlighted by LCCI is the strain this policy could place on the IRIS system itself. The expected increase in password reset requests and account recovery procedures could overwhelm the system, causing delays and potential disruptions in the tax filing process. This, in turn, could lead to frustration among taxpayers and may even result in non-compliance due to technical difficulties beyond their control.

Given these concerns, the Lahore Chamber of Commerce and Industry requested that the FBR reconsider the policy and explore alternative security measures that would address the need for robust protection without imposing undue burdens on taxpayers.

LCCI president suggested that FBR should consider implementing two-factor authentication (2FA) or enhancing monitoring systems to detect suspicious activities. These measures would provide the necessary security for the IRIS system without forcing frequent password changes, which may be both cumbersome and technically challenging for taxpayers, especially for those with limited digital literacy.

Mian Abuzar Shad said that while LCCI fully supports efforts to improve security and ensure the integrity of the tax filing process, the business community must not be penalized by policies that place unnecessary stress on their operations.

Copyright Business Recorder, 2024