They had a very hard time selling the 10 centavos tax on text messaging so they are bringing it down to 5 cents. That’s what Congress – House of Representatives, thru Congressman Danilo Suarez of Quezon is proposing.
Suarez said it is up to the companies to decide if they would shoulder half of the 10-centavo tax, but if they won’t, they can pass on only 2.5 centavos to the consumer.
“If the players would like to absorb it, then there is no problem. If they decide to pass it on to subscribers, it can be half-half, two-and-a-half centavos on the player and two-and-a-half centavos on the subscriber,” he said. - Source
Here’s more,
But from the original proposal to impose a fee on text messages, Suarez’s new proposal would also include calls.
Following a meeting by the oversight committee, Suarez said the members agreed that the text and call fee could be imposed even without legislation as a mere IRR by the NTC. - source
I think this is a good idea. Because As i see it, Telcos are raking big profits from text messaging. However, what i don’t like about this is that, one, when you tax the telcos, they will eventually get back their losses from their consumers. And two, the money that will be collected is “press released” to go to education. And we know that’s half truth right? This idea has been taken out of the box years ago… like last year. And the answer then and now is still a NO.
Last year it was Trade Secretary Peter Favilla who initiated this unpopular move saying that “Texting is also a source of negative reason…(and) it makes people more cynical”
Its a fact that the telcos wants high profits (which company doesn’t want that right?). But as long as any additional burden on them won’t be passed on to the consumers, then first of the second hurdle has been eliminated.
Next, its also a fact that the Government is corrupt. So let’s cut the sweet words and camouflage. This has again been raised because election season is nearing and since we’re experiencing a financial crisis, those seeking for government office are having a hard time getting the funds they need. And the sooner this is laid down and implemented, the more funds they can have for their campaign.
Suarez also said there might not be a need to legislate the fee because the National Telecommunications Commission was already empowered to make such an impost. All Congress had to do was simply pass a resolution for the purpose,” he said, but could not explain the need for such a resolution. - source
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He estimated that the 5-centavo tax on text messages and cell phone calls would generate P70 billion in funds every year.
Suarez said there is no need to legislate the tax, and that the committee will soon start crafting the IRR for submission to President Arroyo. “We will finish the IRR before the opening of the session (April 13). – Source: Business Mirror
Imagine that.. P70 billion for those in power and seeking power to spend. WOAH! Lotsa money!
So who’s gonna keep the money? Rep. Suarez says:
…the tax collected would not go to the Department of Budget Management but to a trust fund. “If we start with a five-centavo fee on the broad spectrum, we can start construction [of computer centers] in April and May and by June, when students return to school, they already would have computer classes.”
Another Erap Foundation huh? Don’t you just love the government? Their making it too easy for us to see what wrong doing they will commit!
Suarez said the House focused on computer centers in schools as the sole beneficiary of the text-and-call fee because of its potent impact on improving the skills of elementary and high school students. – INQ
Then we’ll hear funds being given to public schools in the suburbs of Luzon, Visayas, and Mindanao which what they really need to have are classrooms first than computers. Imagine, a school overflowing with students that they even use the canteen or have their class under the tree. Then you’ll alot funds to buy computers? Ummm… talk about priorities.
So Mr. Congressman, even if you propose a 1 centavo tax on text, i don’t think people will still buy the sweet talk that it will be put to good use. Or maybe we should give them the benefit of the doubt… that maybe they’ll put it to good use after all…. during the first 3 months of opertation? Haha!
At first i thought that those vying for tax on text messaging is bound to loose the 2010 elections.. I was wrong.. its their way of making sure they win – through the funds that will be collected!
