Arroyo: Study tax on text

Posted at 03/26/2009 11:11 AM | Updated as of 03/26/2009 11:12 AM

SAN JUAN, BATANGAS — President Gloria Macapagal-Arroyo wants revenues from a proposed fee or tax on short messaging service or text message to be allocated for critical sectors such as education.

In an informal round table with reporters, she said the public could face more taxes before she steps down from office in July 2010, including possible tax on text messaging, but this should be thoroughly studied.

Asked if it was safe to say no new taxes would be filed because of the global financial crisis, the President answered: "No it’s not safe to say that, in fact there are new taxes filed." She did not elaborate.

"Let’s have it [tax on text] discussed. Remember we brought down already the price of text by 50 centavos, so what’s to increase it again by five centavos or 10 centavos. We’re not talking anymore about one peso if ever, less than what it went down," she said.

"It has to be directed, earmarked for a specific expenditure. Education is very appropriate," the President said.

Quezon Rep. Danilo E. Suarez (3rd district), head of an oversight committee, said on Tuesday the proposed "broad spectrum fee" could be reduced to only five centavos per text from an original proposal of 10 centavos.

He added the scheme might not require legislation since the National Telecommunications Commission is empowered to impose such additional fees.

Congress could simply pass a resolution on the issue, Mr. Suarez said, so that the Executive could draft the fee’s implementing rules and regulations. — Bernardette S. Sto. Domingo


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