ISLAMABAD: The Federal Tax Ombudsman (FTO) has rejected the Federal Board of Revenue’s (FBR) recent policy requiring taxpayers to change their passwords every 60 days, calling it arbitrary and unfair. The FTO directed the FBR to issue a new, more balanced policy following multiple complaints from taxpayers.
The policy, which mandated frequent password changes, was found to cause significant hardship for taxpayers. The FTO’s directive came after an own-motion investigation under the FTO Ordinance of 2000, which examined the policy’s impact on taxpayers. The FTO concluded that the policy was implemented without consultation with the taxpayers, which constitutes maladministration.
According to the FTO’s findings, the process for resetting passwords involved multiple steps, which caused unnecessary delays and increased the burden on taxpayers. The “forgot password” option required users to complete eight steps, making it a time-consuming and inefficient procedure for all taxpayers. The FTO also pointed out that the policy was implemented without assessing which taxpayers were most vulnerable to cyber threats.
The FTO suggested that FBR should only require frequent password updates for those taxpayers whose data were at higher risk of cyberattacks. For the majority of taxpayers, the FTO recommended a less burdensome alternative: a warning message notifying taxpayers if their password had not been updated for an extended period, similar to practices followed by banks.
In its directive, the FTO urged the Secretary of the Revenue Division to form a committee that includes stakeholders and business community representatives. This committee would review the current policy and develop a more practical approach, gathering input from all parties involved before implementing any future changes.
This move by the FTO highlights ongoing concerns over the FBR’s approach to taxpayer management and calls for more inclusive policymaking.
