LCCI concerned over FBR's password change policy

Urges need for considering alternative security measures to support businesses

LAHORE:

The Lahore Chamber of Commerce and Industry (LCCI) has raised concern over the Federal Board of Revenue's (FBR) newly introduced policy requiring registered taxpayers to change their passwords every two months.

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

In a letter written to FBR Chairman Rashid Mahmood Langrial, LCCI President Mian Abuzar Shad expressed the chamber's concern over the condition of frequent password changes.

While acknowledging the importance of securing online transactions and safeguarding sensitive taxpayer information, he said that frequent password changes could create challenges for taxpayers, especially those who were already struggling with complexities of the IRIS system.

The LCCI president added that many small businesses found the IRIS system difficult to navigate and may lack necessary resources or technical expertise to manage 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 run smooth business operations.

Shad said that another key concern was the burden the new policy could put on the IRIS system. The expected increase in password reset requests and account recovery procedures could overwhelm the system, causing delay and potential disruption 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.

Given these concerns, the Lahore Chamber requested that the FBR reconsider the policy and explore alternative security measures that could address the need for protection without imposing undue burden on taxpayers.

He suggested that the FBR should consider implementing a two-factor authentication (2FA) system or enhancing the monitoring system to detect suspicious activities.

Shad said that while LCCI fully supported efforts to improve security and ensure integrity of the tax filing process, any new measures should be designed with the aim of supporting businesses, not hindering their growth or adding to the operational burden in a challenging economic environment.