Text tax bill recalled

DUE to growing public outrage, the House committee on ways and means has reconsidered the approval of a consolidated bill seeking to impose excise tax on every text message sent.

The committee chaired by Rep. Exequiel Javier yesterday decided to conduct more discussions to get the sentiments of various sectors, including subscribers, on the proposed five-centavo excise tax.

The panel was pressured by several groups including Malacanang and Senate to recall the bill which does not contain the “no pass on” provision, meaning subscribers, not the telecommunication companies, will shoulder the five-centavo tax.

“We find it appropriate that we suspend the approval of the bill,” Javier said, adding his panel will draft a new scheme to ensure that the five centavo excise tax will not be passed on to the consumers.

The solon said the committee will amend the bill to ensure that the public will not be burdened with additional tax.

The consolidated bill was approved on Sept. 8. Javier said members of the committee agreed to disregard the “no pass on provision” because it is difficult to impose text tax on telecommunication companies as this may affect business.

But during the deliberations yesterday, Cagayan Rep. Rufus Rodriguez moved to recall the approval of the bill to give way to more public discussions. It was seconded by Akbayan Rep. Risa Hontiveros.

Txt Power President Tonio Cruz objected to the five-centavo tax saying it is a “direct attack against the people and not against the telcos” that are already earning billions.

Rodolfo Salalima of Globe Telecoms also opposed the tax, saying the cost of a text message is only 23 centavos and telcos are only earning two centavos for every text message. By: Jester P. Manalastas - Journal online