Palace, Favila distance selves from text tax amid flak

Malacañang and the secretary of the Department of Trade (DTI) have started distancing themselves from a proposal to impose an additional tax on text messages, after the plan drew strong criticisms from the public. DTI Secretary Peter Favila, who found himself at the center of the controversy, on Friday insisted that there was no proposal that came from him or other government officials for an added tax on text messages. "Wala akong binibigay na proposal. Wala rin akong natatanggap na proposal about tax on texting (I never received a proposal about a tax on text messaging, much less made the proposal)," Favila said in an interview on dzXL radio. He said though that any proposal, including a tax on text messaging, would have to be studied at the very least, once it reaches his office. "Sa government code of ethics, pag may communication, ’di p’wede basta itapon. Kailangan sasagot kami, otherwise, magkakaroon kami ng problema (The Code of Ethics in government decrees that if there is any communication to us, we cannot just discard it. We have to answer or we will be held accountable)," he said. Favila also belied reports that he had changed his cell phone number because of a barrage of "hate text" messages. For his part, presidential spokesman Ignacio Bunye on Friday said that there was never any concrete proposal from the Cabinet to impose the added tax on text messages. "There was no concrete proposal for a tax on text. Ang main point, itong tariff (The main point was to lower import tariffs on oil),"Bunye said in an interview on dzMM radio. When asked to categorically state if there was no plan to impose an added tax on text messages, he said, "Yes." Bunye said the added tax on text messages was not even listed as an issue in the Cabinet meeting earlier this week. "Side issue lang ‘yan. Ang main issue na pinag-uusapan ay ang tariff at EVAT (expanded value added tax). It was not in the agenda of the Cabinet (The tax on text is just a side issue. The main issue is lowering import tariffs and the expanded value-added tax. The text tax is not in the main agenda of the Cabinet)," he said. On Thursday, a militant consumer group launched a "text revolt" against Favila for allegedly seeking an added tax on text messaging. TXTPower posted Favila’s mobile on the group’s Web site urging the public to text the secretary and object to the reported tax on text messaging. "TXTPower calls on all texters and mobile phone subscribers to join the texters' revolt. Text Trade Sec. Peter Favila at 0917-8176110 with this message: 'NO TO TEXT TAX!'" the group said. It claimed Favila was "being ignorant, callous and incompetent" in denigrating the value of texting to the public. "Texting is the de facto messaging standard today, because it is cheap. It is important to the public. It is used principally for personal and official reasons. The true source of public cynicism is not texting but the Arroyo government and its abominable projects such as this text tax," the group said. "Perhaps Favila does not know anything about the costs of texting because the public pays for billions of pesos in the government's communications expenses," it added. The group also dared President Gloria Macapagal Arroyo to declare a moratorium on her foreign travels to save public funds. The group also urged the President not to impose tax on text messages. Joining TXTPower in rejecting the text tax and seeking a moratorium on the President's foreign travels are the Computer Professionals Union, the League of Filipino Students and the Kabataan Partylist. "Mrs. Arroyo spent P692 million in public funds her 2005 and 2006 junkets alone. Another estimate is P8.2 billion for the past six to seven years," it said. The group said that without these junkets, "we won’t need any new text tax and may abolish the much-hated value-added tax." According to TXTPower, the Arroyo administration collects 12-percent expanded value added tax from all local text messages and calls, as well as Overseas Communications Tax for international text messages and long distance calls. As of end-2007, the Philippines has 55 million mobile phone users. Smart says that it has 30 million subscribers while rivals Globe and Sun each reported that they have 20 million and five million subscribers respectively. TXTPower also reminded Speaker Jose de Venecia Jr of his commitment not to impose any new tax on text messaging. "We expect the Speaker and the House of Representatives to not even consider any measure for a text tax. They have already expanded the VAT. They should not be too callous as to resurrect this Frankenstein," the group said. - GMANews.TV