Philippines Reconsiders Tax on Text Messages

­Just over a week after the Philippine politicians approved plans for a tax on text messages, the measure is to be subjected to an investigation following strong  public opposition. The measure had been approved by the House of Representatives.

The law is seeking a tax of five centavos (US$0.001) on every text message sent by mobile phone. Its backers estimate that the tax would raise up to US$700 million in revenue for the government.

The committee agreed that more public hearings should be conducted on the controversial measure as some groups complained they were not heard at the earlier meetings.

At the hearing, the panel allowed consumer advocacy group TXTPower to express its opinion on the measure.

"On behalf of the consumers, your taxpaying constituents, we in TXTPower wish to express our strong and unconditional opposition to the proposed 5-centavo new tax on mobile- phone services and the setting up of a metering device to purportedly check on revenue streams of the telecommunications firms," Anthony Ian Cruz, TXTPower president told the Business Mirror newspaper.

The Cellphone Owners and Users of the Philippines (COUP) has separately filed a lawsuit to put a halt on the legislation.

"The class suit is filed in order to prevent temporarily, and later on permanently, the illegal, prohibitive and unconstitutional imposition of an excise tax on SMS and overseas calls." the lawsuit claimed.

On the web: Business Mirror

Posted to the site on 23rd September 2009