| GEO Business|
| Provinces to collect VAT on services: Tarin|
| Updated at: 2207 PST, Saturday, December 12, 2009|
KARACHI: Finance Minister Shaukat Tarin said Saturday that Value Added Tax (VAT) will replace General Sales Tax (GST) as it was the next step to GST.
He was talking to media at Karachi Airport alongwith Interior Minister Rahman Malik.
"The federation will collect VAT on goods while the provinces will collect VAT on services," he added.
He said the consensus of federation and provinces on National Finance Commission (NFC) Award is a "historic achievement".
On this occasion, Interior Minister congratulated Finance Minister Shaukat Tarin for his efforts on securing consensus on NFC Award.
Responding to a question, Malik said the government would take action whenever its writ was challenged. We would never allow anybody to work against national integrity, he added.
He said that "target action" will continue in Waziristan.
Replying to another question, he said that diplomats were "exempted" from security checks and therefore they cannot be arrested.
"If we start arresting diplomats, Pakistani diplomats would face the similar fate in their places of postings", he told the questioners who insisted that US diplomats were using tinted glasses and fake number plats in their vehicles.