ISLAMABAD The Senate has recommended to the National Assembly to increase the government servants salary by 60 percent, besides rejecting the proposed one percent increase in General Sales Tax (GST) in the Finance Bill 2010. Chairman Senate Standing Committee for Finance, Ahmad Ali, on Wednesday presented the report regarding amendments in Finance Bill 2010. After the consensus of the House the recommendations were sent to the National Assembly. The report formulated by the Committee has 71 proposals. Senators from both sides of the political divide (treasury and opposition) stressed the Government to include their proposals in the Finance Bill before its approval. The Senate suggested that the salary of the Government employees in BPS 1-16 should be raised by 60 percent instead of the proposed 50 percent. Similarly it also recommends that the minimum wage of an employee should be increased to Rs 9000 per month from exiting Rs 7,000 per month. It also suggested that minimum pensions should be raised to Rs 4,000 per month from the proposed Rs 3,000 per month. Dowry grant for daughters of poor workers should be enhanced to Rs 100,000 from the proposed Rs 75,000. Meanwhile, the Senate Committee rejected the one percent hike in GST and asked the Government to maintain it at 16 percent. Subsidies on electricity and natural gas should not be withdrawn, as it will lead to further inflation, however subsidies should be designed in a way to help the poor. In its recommendations, the Senate body stated for restructuring of PIA, PEPCO, WAPDA, Pakistan Steel Mills and Railway and running these institutions under public-private partnership. It suggested drastic reduction in foreign tours of the President and the Prime Minister and less than 10 members entourage. The Senate body also recommended for freezing of non-salary budget expenditure and that it should be reflected in the budget documents. All international loans and economic agreements should be ratified by the Parliament. The Senates Committee in its recommendations suggested the Government to allocate an amount of Rs 5 billion to flood-affected areas of Balochistan from Prime Ministers Public Works Programme-2. Tt also recommends for increase in family pension for the widows of judges of superior judiciary from 50 to 75 percent. It suggested that Finance Ministry should present broad parameters of budget in March and detailed budget by mid May every year in both Houses of the Parliament. It also recommends that it should be obligatory for the Government to mange its expenditures within the limits set in the budget. Re-appropriation within the budget of a division can be made with the approval of cabinet and supplementary grants should be released after approval of the National Assembly through supplementary money bill. Keeping in view the miserable health and hygienic condition in the country, the Senate Standing Committee suggested to introduce Health Insurance Scheme. Similarly the Committee proposed to introduce Crop Insurance Scheme in order to save the growers from damages of natural calamities. The Senate also recommended reducing duty on crude palm oil so the other vegetable ghee mills in the country could survive. It also asked that State Bank of Pakistan should accelerate its efforts towards promotion of Islamic banking and finance in the country to eliminate Riba as stipulated in Article 38 (F) of the Constitution. The Senate recommended that mark-up rates in discount rates should be brought down to single digit to revive the industrial and agricultural sectors. The Senate body asked that quarterly report on the implementation of the budget should be laid before the National Assemble and the Senate for discussion. It also recommends that 35 million acre feet water going into sea every year and this should be utilised for agriculture and to meet the energy requirements of the country. The Senate Committee also suggest for new Income tax slab for non-salaried individual taxpayers: It is as when taxable income does not exceed Rs 300,000, there is no tax; from Rs 300,000 to Rs 500,000 the tax rate is 7.5 percent; from Rs 500,000 to Rs 750,000, 10 percent; from Rs 750,000 to Rs 1000,000, 15 percent; from Rs 1,000,000 to Rs 1,500,000, 20 percent; and 25 percent tax if the taxable income exceeds Rs 1500,000.