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Submitted by Mike Grenville on Mon, 14 Jan 2008 12:23 |
A texters SMS revolt led by Consumer group TXTPower has forced the Philippine government to abandon plans to impose a tax on text messages. As oil prices have risen steeply recently, the SMS tax proposal came as the government looks for alternative candidates to tax.
Consumer group TXTPower applauded the scrapping of a proposed text tax, less than a day after it waged a “texters revolt†directed at the President’s Trade Secretary Peter Favila who floated the proposal. Comments by the Trade Secretary upset many members of the public when he dubbed texting as a “sinâ€, comparing it with alcohol and tobacco. He said that imposing a tax on SMS could make Filipinos shift their focus on endeavours that are more productive.
The tax on text messages was floated by Favila as a possible additional source of revenue in the light of proposals to scrap or suspend taxes on oil products.
Had it pushed through, text messages would have cost P1.50, with P0.50 going to the government. According to TXTPower, the government already collects 12% EVAT from all local text messages and calls, and another Overseas Communications Tax for international text messages and long distance calls.
As of end-2007, the Philippines has 55 million mobile phone users. Smart reports 30 million subscribers while rivals Globe and Sun each report 20 million and five million subscribers each.
In a statement, TXTPower thanked the public for joining its texters revolt which started when the group spread Trade Secretary Peter Favila’s mobile phone number to allow the public to send protest text messages to the cabinet member.
Peak Oil Energy Crisis
“Mr. Favila and the entire Arroyo government has backed off from the text tax scandal. This is a victory for consumers and the Filipino people,†said TXTPower. The group said “the government should stop imposing new taxes, and to withdraw other taxes as well considering the repeated boasts by the President about the strength of the peso and other economic fundamentals.†According to TXTPower, the government should instead impose controls on prices of all basic goods, petroleum products, water, and telecommunications services.
However, it is clear that the government is starting to realise the scale of the energy crisis it faces - what is known as Peak Oil. In a report in GMA News, Senator Legarda said that "What we need now is to survive the energy crisis while preparing for a future of self-sufficiency in energy needs. We must come up with long-term solutions because the clock is ticking on not only the country's, but the entire world's dependence on oil," she said.
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