ISLAMABAD, June 18: The opposition members on Tuesday staged a token walkout from the Senate as a mark of protest over the government’s move to raise general sales tax (GST) from 16 to 17 per cent as proposed in the federal budget and the recent ‘hike’ in prices of petroleum products.

The walkout was led by parliamentary leader of the Pakistan Peoples Party (PPP) Raza Rabbani and the Muttahida Qaumi Movement (MQM) members joined the protest despite knowing that the government had already announced at the meeting of a Senate Standing Committee earlier in the day that the increase in the oil prices had been withdrawn and the decision to impose two per cent additional GST on unregistered fuel stations had been suspended for two weeks.

The opposition’s walkout was the only highlight of the Senate proceedings during which the members continued debate on the federal budget for the financial year 2013-14 for the fourth consecutive day.

At the outset of the session, Mr Rabbani took the floor on a point of order and drew the attention of the house towards a Monday night unilateral decision of the oil companies to increase the oil prices.

“Is there any government in the country? Are you running a state or fiefdoms?” Mr Rabbani said while criticising the decision of the government to charge two per cent extra GST over and above 17 per cent from the unregistered petrol pumps.

The PPP senator also rejected the government’s point of view that the increase in the GST had become effective after its announcement in the budget speech under a 1931 British era law. Quoting article 77 of the constitution, he said the 82-year-old colonial law could not be considered supreme to the constitution.

Article 77 of the constitution under the title “Tax to be levied by law only” says: “No tax shall be levied for the purpose of the federation except by or under the authority of Act of Majlis-i-Shoora (Parliament).”

The PPP senator said the government had decided to charge extra GST from the unregistered fuel stations and the owners of the stations had simply put the burden on the ordinary people. Against this cruel decision, he said, they would stage a walkout. The MQM senators joined their PPP colleagues in walking out of the house.

Leader of the House Raja Zafarul Haq while responding to Mr Rabbani’s points said the issue of the collection of the GST before approval of the budget had already been discussed and referred to the finance committee of the house. He said the issue had also been taken up by the Supreme Court which had the power to stop this increase.

Mr Haq said the government would fully implement the SC’s decision on the issue.

PPP’s Saeed Ghani regretted that the public was being penalised for non-registration of the petrol pumps. He warned that prices of the general items would go out of reach of the common people after increase in the GST.

PML-Q’s Senator Kamil Ali Agha also criticised the government for implementing the budget without its approval from the parliament.

Senate Chairman Nayyar Bokhari, who also belongs to the PPP, gave a ruling asking the government to direct the FBR to ensure that the burden of the collection of additional GST from the unregistered fuel stations was not shifted to the common man.

He said there was no logic in penalising the public on this matter.