FBR refutes claims of system breach, calls reports misleading

 

ISLAMABAD: The Federal Board of Revenue (FBR) has strongly refuted reports suggesting that its IT system is insecure, asserting that recent media interpretations of the Federal Tax Ombudsman’s (FTO) decision were “incorrect and misleading,” ARY News reported.

In an official statement, the FBR clarified that the case cited in reports pertained to a taxpayer whose login credentials were in their own possession. “The misuse of the password occurred due to the taxpayer’s own negligence,” the statement said, adding that the FBR’s Intelligence and Investigation Wing was the first to identify the irregularity.

The tax authority emphasized that its IT infrastructure underwent a comprehensive security overhaul in December 2024, ensuring compatibility with advanced Security Information and Event Management (SIEM) and Security Orchestration, Automation, and Response (SOAR) systems.

“All critical servers and data storage facilities are equipped with point detection and multi-factor authentication mechanisms,” the FBR said. “Modern logging mechanisms have also been implemented to ensure end-to-end monitoring and transparency.”

The FBR further stated that a QR code-based verification system was introduced in May 2025 to strengthen workflow security. However, the feature was temporarily suspended following requests from various tax bar associations.

Urging taxpayers to adopt stronger password practices, the FBR advised against using easily guessable credentials or reusing passwords across multiple platforms. “No security system can detect or prevent the misuse of a stolen password,” the statement concluded.

Earlier, it was reported that the Federal Board of Revenue (FBR) would now be restricted to tax collection and wouldn’t formulate the policy.

The government has activated the Tax Policy Office in the finance ministry, implementing a condition of the International Monetary Fund (IMF), sources said.

Dr. Najeeb Ahmed Memon has been posted as the head of the tax policy office for two years, according to sources.

Sources have said that the working over the preparation of tax policies for the financial year 2027 will begin from the next week and the rules and regulations will be finalized.