Passing the cost of graft and corruption and government�s failure to provide cheap and accessible telecommunications

The revival of the proposal of the government to impose an excise tax on each text sent is just showing that it is not interested in improving people’s access to telecommunications.

Making the texting public shoulder the budget deficit through this tax can be called �PASA-COST� much like the pasa-load that is popular among text users. What the government fails to see is that the budget deficit stems from corruption that accounts for as much as 20 percent of appropriations of government officials. With their massive spending in the recent elections, it is no wonder that the government wants to PASA-COST all of that to us.

Our dependence on texting is reflective of the government�s failure to roll out of telecommunications facilities in the provinces and cities. In the absence of any cheap and accessible telephone lines, texting is the most convenient form of communication for most of us making the Philippines the world�s texting capital.

We want to point out that this tax proposal is but a revival of the government�s attempt in December 2003 to impose taxes on texting upon the prodding of the IMF. The 150 million texts per day being sent by consumers is now again the target of the IMF and the government for its prescriptions that have always run counter to the interest of the Filipino people.

We welcome the pronouncements of some senators that they will not let this new tax pass in the Senate. In light of increasing costs of living due to rising oil prices, power rates and prices, this new tax on text makes the burden heavier to the Filipino people.

Reference:

Dr. Giovanni Tapang, Chairperson
Convenor, Txtpower
Agham: 9266636/9263139

Consumer advocacy group TXTPower today dubbed as “an-oft-resurrected and oft-slain Frankenstein” the Department of Finance plan to impose a new tax on texting or short messaging service (SMS).

“We vow to slay this monster once and for all when Congress converes in July. We want no new taxes We want more affordable and accessible telecommunications services,” said TXTPower convenor Anthomy Ian Cruz.

This is the fourth time the FOD threatened the nation’s over 20 million mobile phone subscribers with a new tax.

However, Cruz said that “this Frankenstein text tax remains absolutely and completely unjustified.”

Cruz explained that “as of now, telecommunications remain expensive not only due to high rates slapped by companies but also due to double taxation by the government. Lest we forget, government already slaps text messages and calls with 10 percent calue-added taxes and communications taxes.”

Truth to tell, the DOF is one of the biggest stumbling block to cheaper telecommunications services,” he stressed.

“Imposing taxes on texting is anathema to a country such as the Philippines which has a very low telephone density rate. People resort to texting as a primary means of communication among family, officemates and friends owing to the lower cost of SMS relative to long-distance calls,” Cruz said.

He said that the DOF’s claim that networks are clogged only by unimportant messages and thus making SMS or texting subject to excise tax is pure flotsam.”

Cruz likewise urged consumers and public to “stop painful impositions of the International Monetary Fund, including this Frankenstein called text tax.”

“We have had enough of IMF impositions which only spell hardships and miseries to the people. These impositions come in the form of new or higher taxes among various dire economic prescriptions” said Cruz.

“If President Arroyo and the DOF would like to follow the IMF’s prescription, they should do so but only require themselves and not to drag the entire nation to their stupidity,” Cruz said.