House panel OKs five-centavo tax on text, calls

Without ensuring that the additional cost will not be shouldered by mobile phone subscribers, a House panel approved a proposal imposing a five-centavo tax on text, multimedia messages, and calls. After several hearings on the controversial proposal, the ways and means committee approved a consolidated version of Ilocos Sur Rep. Eric Singson's bill and Quezon Rep. Danilo Suarez's resolution imposing the five-centavo excise tax. Once collected, the proceeds will be set aside for the Department of Education, the Technical Education and Skills Development Authority, and state universities and colleges. "There shall be levied, assessed, collected a specific tax equivalent to five centavos for every overseas dispatch, message, or conversation transmitted from the Philippines by telephone, telegraph, telewriter exchange, and other communication equipment services which shall be paid by the service provider," the consolidated bill read. While the consolidated bill stated that the excise tax would be "paid by the service provider," it excluded the provision in the original Singson bill explicitly stating that the additional cost would not be passed on, directly or indirectly, to mobile phone subscribers. "Even if there was a no pass-on provision, it will be very difficult to ensure that telcos will not pass cost to subscribers," said committee chair and Antique Rep. Exequiel Javier. He said the bill would be reported out to the plenary next week. But Isabela Rep. Giorgidi Aggabao, a vice chairman of the committee, said the no pass-on provision "will be there." "The burden will be borne solely by telecommunication companies," he told reporters. The revenue collected will also be spent on the acquisition of a metering device that will interconnect the National Telecommunications Commission, Bureau of Internal Revenue, mobile phone service providers and other concerned government agencies. "The government will spend for it (metering device)," said Antique Rep. Exequiel Javier, committee chair. Only Cagayan de Oro Rep. Rufus Rodriguez opposed the proposal's passage. It was approved without the presence of representatives from telecommunication companies, who had earlier expressed their opposition to the proposal. House Speaker Prospero Nograles said he wants the bill's authors and the Ways and Means committee to assure the public that any tax on text would not result in an increase in the existing text costs. “We will not allow any such additional taxes on the shoulders of the public," Nograles said in a statement. The consolidated bill was authored by Javier, Singson, and Suarez. Javier said the bill would be reported out to the plenary next week.-GMANews.TV