ISLAMABAD - The Federal Government and all the provinces on Monday agreed on the collection of General Sales Tax on service sector, as the Government said that the provinces could collect tax on the said sector under the Constitution and NFC Award, however, Federal Board of Revenue (FBR) could collect if the provinces authorised the Board to do so. Addressing a press conference here, Secretary Finance Salman Siddique informed the media persons that the provinces could collect tax on the services sector under the Constitution and 7th NFC Award. Regarding collection of taxes on telecommunication sector, he said the provinces would collect tax on it and some taxes that come to the Centre would be distributed through divisible pool for which a formula would be finalised on Tuesday. He said that the Federal Government had held meeting with the officials of provincial governments here today (Monday) to discuss the issues related to Reformed General Sales Tax (RGST), which was likely to be imposed from October. He further said that some of the issues related to collection of GST on services were resolved on Monday, however, final decision in this regard would be taken on Tuesday. He said that under 7th NFC Award, the provinces were empowered to collect GST on services, however, if any province wanted to give this right to the Centre, FBR would collect it for them, however they (provinces) would need to make some legal changes in this regard. The Secretary Finance said that in todays meeting it was decided that the provinces would collect GST on services, which had no input adjustment and no cross provincial transaction. Meanwhile, regarding services that have input adjustment and also have cross provincial transaction, the provinces could give authority to FBR to collect taxes on it, and after deducting service charges; the Board would give it to the provinces. Sources informed The-Nation that the provinces were agreed that the FBR should collect taxes on some services includes construction and banking sector, however, the provinces should authorise them to do so. Sources were of the view that only Sindh would collect taxes on services, while rest of them would authorise FBR for its collection. He further informed that GST rate of services would be same in the country, however, timing of RGST and other issues would be discussed today (Tuesday).