SAN JUAN: The Palace is open to the proposal to impose a 10-centavo tax on text messaging as long as the revenues are earmarked for a specific expenditure and the increase should not be passed on to consumers.
Speaking with reporters at the Virgin Beach Resort in San Juan, Batangas, President Gloria Arroyo admitted that an additional five- or 10-centavo charge for text messages would not be too much of a burden, considering that the rate had already been slashed by half.
Let's have it discussed.
Remember, we already brought down the price of text by 50 centavos, so what�s to increase it again by five centavos or 10 centavos,the President said. The proposal was introduced by Quezon Representative Danilo Suarez, who said the move would
generate billions in revenue for the government, which could be used to finance its economic stimulus programmes.
The President agreed that the revenues should be used for a specific expenditure, particularly on education, which she said
is very appropriate. The President declined to comment on whether the telecommunications companies should absorb the cost or pass it on to consumers.
He (Suarez) said that the hearings, the technical working group meetings are taking place.
We'll just wait for their output," the President said. Press Secretary Cerge Remonde, on the other hand, said that as much as possible, the cost of the additional tax on text messages should not be passed on to the consumers.
Remonde said any additional revenues for the government are always welcome but it should not be an added burden on consumers.
"There is no question that whatever additional revenues we can get would be very useful," Remonde said.
"But what we want to avoid is an additional burden on the people," he added.
Remonde said that text messaging, in particular, has become a very important part of the life of every Filipino, so imposing a tax on text would have a negative impact on cell phone users.
He said the policy of the President is that the government must sacrifice for the people and not the people sacrificing.
In the past, President Arroyo compelled cellphone networks to cut the cost of their text messages by half for the benefit of consumers.
The providers gave in to the request of the President and brought down the cost of text messages to 50 centavos on a promotional basis. Arroyo also committed to a moratorium on new taxes after acknowledging that the increase in the value added tax rate was a burden to consumers.
This is ridiculous! I don't agree with this. Let's hope provider will shoulder the tax and not pass to end users.
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