Gordon, telcos clash over text tax bill
Two telecommunications giants warned that mobile phone users may have to pay more if Sen. Richard Gordon’s proposed Senate Bill 2402 or the Health and Education Acceleration Program (HEAP) bill, which seeks to compel telecom firms to set aside part of their earnings to buy more books, build schools and hire more teachers, is passed into law.
Under Gordon’s bill, telecom companies such as Smart Communications and Globe Telecommunicatoons will allot P2 million every day in the next five years to finance pro-education projects.
In a hearing Wednesday morning, Gordon argued that telecom firms are earning more than enough and its time they did their part in nation-building.
However, both Smart and Globe officials asserted that the companies will be forced to pass the additional costs to cellphone users.
Smart's legal counsel Roy Ibay also pointed out the proposed bill has legal infirmities.
Ibay explained the proposed law is basically a revenue bill that should come from the House of Representatives.
Globe, on the other hand, called the proposed bill quote "confiscatory and illegal."
The telecom companies said they would be forced to bring the issue to the courts if the bill is passed by the Senate.
They also said they are already doing their part in nation-building, arguing that they already give numerous services to the public and that the law is not needed anymore.
Gordon, however, remained unperturbed by the telcos' protestations, saying he would put a "no pass-on" provision to prevent the companies from passing the cost on to the consumers.
He added that the National Telecommunications Commission (NTC) is already present to regulate the rates of text messaging services.
He also admitted that the bill is a tax-related legislation, but he said it would be telecom companies that would shoulder the costs and not the consumers. With a report from Maricar Bautista, ABS-CBN News