Interview with Mr Ashfaq Yousuf Tola — President, TOLA ASSOCIATES
[box type=”shadow” align=”” class=”” width=””]Profile:
Professional Accomplishments
Memberships:
- Fellow Member of Institute of Chartered Accountants of Pakistan
- Fellow Member of the Institute of Cost & Management Accountants of Pakistan
- Life Member of Karachi Press Club
- Life Member of SAARC Chamber of Commerce and Industry
- Member of Karachi Tax Bar Association.
Key Achievements:
- Presentation to IMF on Single Stage Sales Tax in December 2015
- Visited Turkey as an official of Government of Pakistan to study Turkish Tax System and authored a report on Turkish Taxation System
- Knowledge of more than 40 Jurisdictions around the Globe and co-authored report with Dr. Hafeez Pasha on Sindh Provincial Taxation System
- International Speaker on Pakistan Economy and Non-Resident Taxation in 2018 and 2019 at Dubai, Abu Dhabi and Jeddah
- Distinction of passing CA Examinations – Intermediate & Final (both groups together in 1st attempt) as trainee of PWC A. F. Ferguson & Co., Chartered Accountants
Areas of Expertise:
- Tax Planning and Advisory
- Business Advisory Services
- International Mergers and Acquisitions
- Corporate Finance and Investment Advisory
- Due diligence and Forensic audits
- Financial Product Designing and Launching
- Public Listings and Corporate Affairs
Key Positions:
- Member Board – Privatization Commission, Government of Pakistan (Present)
- Chairman – Sub-Committee on Taxation for promotion of Islamic Banking Ministry of Finance, GOP. (2017)
Federal Board of Revenue, Government of Pakistan:
- Chairman Anomaly Committee (2019)
- Member Tax Reforms Implementation Commission (2016 to date)
- Member Tax Reforms Commission (2015)
- Member Tax Advisory Council (2014‐15)
- Member Taxation Reforms Co‐ordination Group (2011‐13)
- Member Revenue Advisory Council (2011)
Institute of Chartered Accountants of Pakistan:
- Vice President (Present)
- Member Council (Present)
- Chairman – Fiscal Laws Committee (Taxation) (Present)
- Chairman – Anti Money Laundering Committee (Present)
- Chairman – CA Joint Committee (Present)
- Member Investigation Committee (Present)
- Member Examination Committee (Present)
- Member Public Sector Committee (Present)
- Member Overseas Coordination Committee (2018)
- Member Regional Committee – (Southern Region) (1993 – 1996)
- Secretary of Regional Committee (Southern Region) (1996)
- Member Education and Training Committee (1994‐95 95‐96 96‐97)
- Member Technical Services Committee (1992‐93 93‐94)
- Chairman Chartered Accountant Students’ Association. (1993)
South Asian Federation of Accountants:
- Member Fiscal Law Committee (Present)
- Member Tariff Committee (Present)
Federal Tax Ombudsman:
Member Advisory Committee (South) (Present)
Pakistan Institute of Corporate Governance:
- Member Board of Directors (Present)
- Member Audit Committee (Present)
Pakistan Institute of Public Finance Accountant:
- Member Board of Governors (Present)
- Chairman CPD Committee (Present)
Institute of Cost & Management Accountants of Pakistan:
- Secretary of Karachi Branch Council (KBC) (1995 and 1996)
- Elected Member KBC and Convener Seminar and Publication Committees (1992‐96)
- Member Technical Committee
- Member Research Committee
Karachi Club
- President (2012 and 2013; and 2016 and 2017)
- Honorary Secretary (2008)
- Member Managing Committee (2003, 2004)
Professional Experience
- President Tola Associates April 2017 to date
- Senior Partner Naveed Zafar Ashfaq Jaffery & Co, Chartered Accountants, a member firm of Prime Global International 2012 to Present
- Partner Nasir Javaid Maqsood Imran Ashfaq, Chartered Accountants 2011 to March 2012
- Principal Strategic Officer in Stallion Textiles (Private) Limited. 2008 to 2010
- Chief Executive Officer in Fincon. 2000 to 2007[/box]
PAKISTAN & GULF ECONOMIST had an exclusive conversation with Mr Ashfaq Yousuf Tola regarding FOREIGN DIRECT INVESTMENT and EASE OF DOING BUSINESS. Excerpts of the conversation are as follows:
A crucial aspect and effect of globalization has been cross-border flows of foreign direct investment (FDI) and the footprints created by multi-national companies. Every developing nation is striving to implement investment liberalization policies to enhance growth by attracting FDI.
Pakistan has been working towards creating a better environment for businesses that also promotes ease of doing business. Moreover, it has also been open to foreign investment with creation of Economic Zones and Linkages of trade and industrial and monetary policies for greater convergence. Taxes in Pakistan are categorized into two types: Direct and Indirect Taxes. Direct Tax includes Income Tax which is a federal subject as per the Constitution of Pakistan 1973. Hence, it is being administered by the Federal Board of Revenue under the Income Tax Ordinance, 2001 and its related rules. Indirect taxes include Sales Tax on Goods and Services, Excise Duty and Customs Duty etc. All the indirect taxes, except for sales tax levied on services, are a subject matter on which the Federal Government has competency to legislate, and hence, are administered by the FBR.
Sales tax on goods is governed under Sales Tax Act, 1990 and its related rules, whereas excise duty on goods and services is covered under the Federal Excise Act, 2005 and its related rules. Moreover, Custom Duty and Regulatory Duty is levied under the Customs Act, 1969 and Pakistan Customs Tariff. Since sales tax on services is a provincial subject, all the four provincial tax authorities have promulgated their respective sales tax on services acts and the rules thereon.
It may be noted that sales tax on services within the Islamabad Capital territory is the domain of the FBR for which the FBR has issued Islamabad Capital Territory (Tax on Service) Ordinance, 2001. Foreign Direct Investment (FDI) in Pakistan is governed under policies issued by Board of Investment (BOI) from time to time including privatization, liberalization, and deregulation, which is in line with the existing transformation of Pakistan as a regional trade hub and increased regional connectivity through China-Pakistan Economic Corridor (CPEC), political stability and revival of economic growth to catch up with the Eastern Asian economies.
Some of the relevant portions of the BOI policy have also been described in document. Naturally, if foreign and local investment is made in the corporate sector, the Companies Act 2017 is of paramount importance. Similarly, regulations made by the SECP pursuant to different sections under the Companies Act 2017 are also essential.
Pakistan has a rapidly growing youth population, with 64% of its population being younger than the age of 30. A young population can always be the catalyst to success for a country and be the driving engine for economic growth. Moreover, the world has just recently, and finally, started tapping the potential in the start-up sector(s) of Pakistan.
A statistic testament to this is that there has been investment worth USD 305 million during January-September 2021. Combine all these factors with the potential opportunities the China Pakistan Economic Corridor brings to Pakistan, it is one of the most exciting countries to invest in at this point in time, with a lot of potential business opportunities in the offing. A crucial thing CPEC has brought with it is the significant improved and efficient transportation system across the country. It may be noted that legal protection to foreign investment in Pakistan is fully protected by the following legislation:
- Foreign Private Investment (Promotion and Protection) Act, 1976;
- Protection of Economic Reforms Act, 1992; and
- Bilateral investment treaties with various countries.