Consumers rejoice as Palace 'backs off' from text tax

Consumer group TXTPower on Friday claimed that it won on its campaign against taxing text messages after Malacañang distanced itself from reports that the government was eyeing the said tax imposition on short messaging system to cover loss from tariff reduction on oil imports. "(Trade Secretary Peter) Favila and the entire Arroyo government have backed off from the text tax scandal. This is a victory for consumers and the Filipino people," said TXTPower in a statement. The group said "the government should stop imposing new taxes, and withdraw other taxes as well considering the repeated boasts by President (Gloria Macapagal Arroyo) about the strength of the peso and other economic fundamentals." The group warned that the government "will face a bigger revolt if it imposes any new tax or does not do anything to stop increases in prices of oil and basic goods." It was reported earlier in the day that presidential spokesman Ignacio Bunye 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 a radio interview. 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. Also, 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. - GMANews.TV