Senate recommends 10% increase in Govt employee salaries.

ISLAMABAD -- The Senate has recommended a 10 percent increase in the salaries and pensions of serving and retired government employees.

The House today unanimously adopted recommendations of Senate's Standing Committee on Finance on the Finance Bill 2020, containing the annual budget statement.

The recommendations were furnished by Chairman Standing Committee on Finance by Senator Farooq Hamid Naek.

The House recommended that salaries of government employees be enhanced at least 10 percent. The Senate recommended that the federal government should double the budget for education and health sector. It demanded that budget allocation for ministry of national health services must be enhanced to a minimum of five percent. The Senate recommended granting of tax relief for the manufacturing and supply of Personal Protective Equipment. Budgetary allocations for online education and Higher Education Commission were also recommended by the House.

It demanded that 11 percent cut proposed on the share of provinces in the National Finance Commission award must be revised immediately. It was also recommended that more funds should be allocated for management of rain water reservoirs as well as construction of small dams.

The recommendations say that tobacco must be treated as a crop like wheat, maize, and sugarcane and must be exempted from taxes and duties. However, Federal Excise Duty on cigarettes should be enhanced as per World Health Organization guidelines. The House recommended that custom duties of raw material, essential finished goods and plant and machinery whose domestic alternative is available in the country should be reduced to zero. Furthermore, Customs duties of these items, having local alternatives, available, must be charged at double of the existing rates. Abolishment of all kinds of withholding tax, chargeable on cash transactions form banks has also been recommended by the Upper House.

The House recommended that recycling industry functioning at small levels should be exempted from sales tax. It recommended that funds should be allocated for improvement in the aviation sector and to upgrade airports across the country.

The Senate recommended that a realistic tax collection target should be set for the next fiscal year. It recommended to raise at least 50 percent in the Corona Stimulus Package for fertilizer subsidy, loan remission and other relief to the farmers in view of COVID-19 and locust challenges.

The House demanded to...