Govt tax collection target achievable

KARACHI - Though the tax collection target set by the government for the fiscal year 2011-12 is achievable but economic conditions do not seem to support it. In order to broaden the tax base, the government needs to revive investors confidence and business activities by improving infrastructure facilities in the industrial areas, instead of giving tax holidays and exemptions to business community. In an exclusive interview with The Nation, The Institute of Chartered Accountants of Pakistan (ICAP) President Saqib Masood has said that tax rates should be gradually raised to meet the revenue collection target, in this way masses will not be burdened as well. Saqib Masood is a Commerce graduate and Chartered Accountant by qualification. He possesses over 25 years experience of Auditing and Practicing in Taxation laws. He said the role of accountants has gradually evolved from a stereotypical image of bookkeepers to that of business advisors. Throughout the last 5 decades, the Institute has never compromised on the integrity of its educational system which is virtually unimpeachable and the quality of the product coming out of that system has now established itself as a benchmark for professional competence. He said, Today, the members of our Institute while conducting themselves in accordance with its principles of professional ethics and fully armed with appropriate technical skills, have established themselves as professionals in demand across the globe especially in the Middle East, UK, Canada and USA. In fact, they can also be found in the Southern Hemisphere ie. in places like Australia and South Africa. With the expected conversion to IFRSs by USA and Canada, it is anticipated that the demand for our members would increase substantially. Mostly our members are working in the US and UK and they are enjoying the same perks and compensation packages as foreign qualified persons, he said. Over the last fifty years the Institute has been able to establish for itself an enviable reputation in the educational and business sectors of Pakistan through the relevance of its syllabus, secure examination system and the professional conduct of its members, whether as stewards in the industrial and banking sectors or as auditors and tax consultants. The Institute continues to recognise its responsibility in the development of the profession and producing competent professionals, he added. To a query, Masood said ICAP has been serving the society in many aspects but the most noted contribution of ICAP is that it acts as a think tank for the government in economic, corporate and financial policy making and as advisor to the government. In the private sector ICAP is also playing an important role. Revenue Advisory Council has 12 members out of which 4 are ICAP members, including myself. ICAP also renders advisory council services to the State Bank and the SECP. Furthermore, Code of Corporate Governance was also developed by the ICAP and SECP implemented it on our recommendation. There is also a separate institution working under the name of Institute of Corporate Governance of which ICAP was one of the sponsor. Talking about the function of ICAP, he said the Institute has the overall responsibility to regulate the accountancy profession in Pakistan. As part of this responsibility one of our most important functions is to act as an examining body for the aspiring chartered accountants. We prescribe syllabus, set examination papers and conduct examinations. After passing all the prescribed examinations and completion of the required training, a student entitled to become a member of the institute. As a regulatory body, we are also responsible to monitor the conduct of members in practice as well as those in the industry. We also have the responsibility to review the accounting standards before these are implemented by the SECP. We provide guidance on technical issues to our members and co-ordinate with various government bodies on various national issues related to economics, finance and taxation, he opined. We are witnessing growth in various fields of Chartered Accountancy which is no exception. CAs nowadays are required to keep their skill set and knowledge base updated, he said, adding that the Continuous Professional Development (CPD) Division of ICAP was launched for the same purpose. Participation of our members in CPD programmes, throughout the year, is mandatory. These programmes comprise nationwide seminars, workshops, reading sessions and competitions etc. and help all our members to maintain a very high level of knowledge and skills. He said that in our history nobody could pinpoint any sort of error, leakage or corruption. Similarly integrity and professionalism of our members is of prime concern to us. In such a fine and professional working system there are more challenges. For any leader to maintain these standards is a major challenge. Great institutions are liable to collapse if mismanaged and ICAP has been moving ahead for the last 50 years with pride and honour. I'm so far able to lead it in the same manner as we believe in the continuation of progress. We have planned to re-visit our examination system and upgrade it. We have formed a task force for this purpose which has almost done its job and forwarded the initial recommendations. In this tenure we would try to revamp the educational scheme and introduce a new syllabus. This will help students to achieve the qualification in smoother circumstances and allow us to progress towards greater international recognition, he revealed. He disclosed that this year on 1st July ICAP has completed its 50th year of establishment. For the golden jubilee celebrations we marked the opening conference in Islamabad in March, 2011. For the upcoming golden jubilee conference in July, delegates have been invited from India, Bangladesh, Sri Lanka and Nepal. Initially speakers from the US and UK were also invited and they showed enthusiasm and interest but due to the prevailing law and order situation of our country its difficult to convince them. However, India has shown keen interest with the participation of 50-60 delegates.