Feeds

Philippine fury at text tax

F@ck off

The Power of One Infographic

Filipino consumer groups have reacted with outrage to a proposed law imposing a tax on text and multimedia messages sent from mobiles.

Despite attempts to include a "no-pass-it-on" proviso in the bill it passed yesterday with no such safeguard.

Speaker Prospero C Nograles said: "We will not allow any such additional taxes on the shoulders of the public." He said he there was no need to increase the cost of texts paid by punters but that the tax should be extracted from mobile operators.

Messages typically cost a peso and the government wants only five cents in tax - or more for multimedia messages. Nograles reckons the tax amounts to about 20 per cent of operator profits on each message.

The Ways and Means Committee will now introduce a substitute bill which will include a provision that the tax must be paid by mobile operators. Any attempt to pass on the tax to punters will lead to suspension of their franchise licences.

Nograles's statement is here.

But Philippine consumer group TXTPower is unimpressed. It pointed out that the government already puts a 12 per cent tax on mobile services so a further tax was unjustified.

The group offered a well-worded alternative to filling the 36bn peso debt hole. TXTPower suggested: "By reallocating P4-million from each congressman’s pork barrel, P10-million from the Office of the President and 10 percent from the budget intended for debt servicing."

The full statement is here. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.