Tax on Text

Palace backs tax on text
Manila Bulletin - Wednesday, September 9
http://ph.news.yahoo.com/mb/20090909/tph-palace-backs-tax-on-text-020e1c8.html



Malacanang Wednesday threw its full support to congressional moves to impose five centavos excise tax on every text message sent through mobile phones.

Executive Secretary Eduardo Ermita said the government will support any efforts to raise much needed revenues to sustain the economic growth and improve social services to the people.

"The Palace will support any measures that will help generate funds and resources for governance," Ermita said in a news conference. "We are confident if the both members of Congress see that it is useful for us to have more resources to support the projects, then that will be supported by the Palace," he added.

Ermita said it was up to lawmakers to deliberate the pros and cons of the proposed revenue-generating measure, amid concerns the public may carry such additional burden. He assured that the President will study the measure, which seeks to generate some P30 billion a year for the government, before signing it into law.

"If it passes the House, the President will take the appropriate measure and see for herself the advantages and disadvantages of such a measure," he said.

The proposed tax on text, or House Bill No. 6625, was passed by the House committee on ways and means last Tuesday. Proponents seek the tax should be shouldered exclusively by mobile phone providers.

Albay Governor Joey Salceda however opposed the tax on text proposal in Congress, saying it was a "bad economic and social policy." He said he plans to recommend the President to reject such bill.

Salceda, also an economic adviser of the President, pointed out that short messaging service (SMS) is already subject to 12 percent value added tax and 30 percent income tax.

"There is no compelling reason to tax it more than other products. Unlike alcohol and cigarettes, there is no consumptive logic, i.e. welfare increases by penalizing and reducing its usage," he said.

Salceda also warned that the bill on tax on text would also raise the cost of text packages patronized by many Filipinos by 50 percent since average is only 10 centavos. "With no landline, they rely mainly on text for communications especially overseas Filipino workers. Effectively this is an OFW tax," he said.




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‘Tax poor people to the bone? No way’—Enrile
By Christine Avendaño, Gil C. Cabacungan Jr., Michael Lim Ubac
Philippine Daily Inquirer
First Posted 05:03:00 09/10/2009
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20090910-224487/Tax-poor-people-to-the-bone-No-wayEnrile

Filed Under: State Budget & Taxes, mobile phones, Legislation, Telecommunications Services

MANILA, Philippines—A consumer group, an economic adviser to President Gloria Macapagal-Arroyo and the head of the Senate said the proposed tax on text messages would be an additional burden on the country’s 72 million mobile phone users.

Senate President Juan Ponce Enrile said he would oppose the House bill seeking to impose a tax on text messages.

“This will not pass in the Senate with that kind of version. I will not vote for it,” Enrile told reporters.

“Tax poor people to the bone? No way, I will not agree.”

“To rebel against this new tax law is justified,” TXTPower leader Anthony Ian Cruz said as he warned legislators seeking reelection in next year’s national polls of a backlash.

Albay Gov. Joey Salceda said raising the cost of text messages would penalize ordinary Filipinos, especially those who depend entirely on text messages to communicate with their relatives or friends working abroad.

“Effectively, this is an OFW (overseas Filipino worker) tax. Tax on text is bad economic and social policy,” said Salceda, who plans to recommend the rejection of the measure to the President.

A bill, proposing a five-centavo tax on every short and multimedia message, could raise up to P36 billion a year for the government.

House Bill No. 6625 has already passed the House ways and means committee and its proponents are now pushing for it to be endorsed fully by Congress and signed into law by Ms Arroyo.

To help fund budget

The measure is one of the revenue sources being considered by Malacañang to help fund the proposed P1.541-trillion budget for 2010, the inter-agency Development Budget Coordination Committee (DBCC) said during Tuesday night’s briefing for senators.

Enrile said imposing five centavos on top of the P1 charge for text messages was unwarranted.

“It’s not right because this tax would be a burden on teachers, workers, students, nurses and houses just for government to have money to spend,” he said.

Enrile scoffed at the House bill provision that the tax would not be passed on to consumers. “But that’s indirect taxing,” he said.

The House committee said the money would be used to boost the government’s education budget.

On top of 12-percent VAT

But Cruz pointed out that the government was already collecting a 12-percent value added tax (VAT) on mobile phone services.

Instead of imposing the tax, Cruz said the government should cut wasteful spending and stem the loss of money through corruption.

“Congress must exercise restraint in looking for ways and means to finance government programs and operations,” he said.

Industry groups have branded the Philippines the text capital of the world on a per capita basis, with hundreds of millions of messages crisscrossing phone networks every day.

Text-powered revolution

In 2001, text messaging was used to gather tens of thousands of people on to the streets for a peaceful revolution that toppled the graft-tainted presidency of Joseph Estrada.

Besides the 12-percent VAT, text messages were already subject to a 30-percent income tax for mobile phone providers, according to Salceda.

“There is no compelling reason to tax it more than other products. Unlike alcohol and cigarettes, there is no consumptive logic where the public welfare increases by penalizing and reducing its usage,” said Salceda, an economic adviser to Ms Arroyo.

Cost to up 50 percent

He said the proposed tax on text would increase by 50 percent the cost of this communication habit of Filipinos, including OFWs.

Salceda said the text tax would inevitably increase the cost of text messages, including the text message promos.

Although a text message costs at least P1, text promos have brought down the average cost to just 10 centavos per message, according to Salceda.

By tacking on 5 centavos to the average cost of text, Salceda said users would pay 15 centavos per message or an additional 50 percent.

Unenforceable provision

Even the House’s well-intentioned move to attach a “no pass-on provision” barring mobile phone providers from tossing the additional cost to consumers was a bad idea, he said.

“This provision goes against the central idea of capitalism that all costs must be recovered and tax is a cost. At best, it is unenforceable and will only create leakages,” Salceda said.

Levy in the Senate

A Senate version being pushed by Sen. Richard Gordon calls the tax a levy since it will be shouldered by telecommunication companies.

“The lower House (version) is a tax. (The Senate version) is a levy with no pass-on (provision),” Gordon said.

He said revenue from the levy would go directly to health and education. “You can’t allocate it for other purposes,” Gordon told the Inquirer after the DBCC briefing.

Finance Secretary Margarito Teves supported the imposition of a levy, Gordon said.

“Once people see that the money is being spent on health and education, they will really gladly support it,” Gordon said, pointing out that 37 percent of Filipino children were malnourished.

The senator assured the public that telcos would not be able to require mobile phone users to pay the levy.

“They can afford it. They have newspaper and TV ads, sponsorship of basketball teams,” he said.

Gordon said the government was not “trying to kill” telcos because the levy would only be imposed for five years. With a report from Agence France-Presse


____

Enrile vows Senate to block tax on texting
By Charlie V. Manalo
09/10/2009
http://www.tribune.net.ph/business/20090910bus1.html

Senate President Juan Ponce Enrile vowed yesterday the Senate will block a proposed five-centavo tax on text a bill for which was approved the other day by a House panel.

"It will not be approved in the Senate. It is an additional burden to the consuming public," Enrile said.

Enrile made the statement after a hearing of the Senate committee on finance and Development Budget Coordinating Council (DBCC).

Sen. Edgardo Angara convened the DBCC to lay down the figures and strategize properly for a balance and well-planned financial year.

"The 2010 budget is very crucial. Not only will it determine the success of the administration targeting to finish all ongoing projects but also what the next administration will face given our present state," said Angara, who heads the Senate committee on finance.

Several senators have already opposed the additional taxes on text which they believe would be eventually passed on to the subscribers.

"I reiterate my opposition to the imposition of additional taxes on texting that will be shouldered by subscribers," Sen. Ramon Revilla Jr. said.

"Texting has developed to be the cheapest and most accessible means of communication, and new taxes imposed to the public will definitely burden them," he added.

The House ways and means committee has recently approved a consolidation of Ilocos Sur Rep. Eric Singson’s bill and Quezon Rep. Danilo Suarez’s resolution imposing the five-centavo excise tax.

The proceeds to be collected from the text on tax will be set aside for the Department of Education, the Technical Education and Skills Development Authority, and state universities and colleges.

The revenue collected will also be spent on the acquisition of a metering device that will interconnect the National Telecommunications Commission, Bureau of Internal Revenue (BIR), mobile phone service providers and other concerned government agencies.

House Deputy Minority Leader and Bayan Muna party-list Rep. Satur Ocampo also called on the House leadership to halt the measure "in these times of economic hardship that affects the majority of all cellphone users."

"The House committee on ways and means is continuing the big mistake of pushing a 5-centavo tax on text that the House leadership says will be shouldered by the telecommunications companies. This is far from the truth as the telcos will only pass on this new tax burden to the consumers," Ocampo said.

The ways and means panel approved a substitute bill to House Bill 6625, authored by Deputy Speaker Eric Singson, in consolidation with the pertinent proposed provisions covered by House Resolution 282 filed by committee on oversight chairman Danilo Suarez.

"The Arroyo administration wants the additional tax to generate at least P20 billion annually to be allotted to computer literacy program of public school students. The measure covers texting or short messaging service (SMS), multimedia messaging service (MMS) and voice calls," Ocampo said.

Some House members estimate that with two billion text messages sent daily through all the cellular phone providers, government would earn around P100 million in revenues daily from the proposed 5-centavo fee.

The BIR has collected at least P22.94 billion from telcos in 2007 with the current taxes already levied by government.

"Congress must be sensitive to the plight of the people. The House leadership must say clearly that this is a new tax that is probably intended to fuel an election budget for the administration. Any new tax on cellphone messaging services and calls will only be borne by consumers, as Globe, Smart, Sun or any telco will pass this on to them. We will side with the country’s cellphone users and texters in opposing this new tax," Ocampo said.

A consumer group also hit out at the planned tax, which is making its way through Congress, warning the country’s 70 million mobile phone users would be unfairly required to carry the burden for a cash-strapped government.

"To rebel against this new tax law is justified," TXTPower leader Anthony Ian Cruz told AFP as he warned legislators seeking reelection in next year’s national polls of a backlash.

Cruz pointed out that the government already collected a 12-percent value added tax on mobile phone services.

Instead of imposing the tax, Cruz said the government should cut wasteful spending and stem the loss of money through political corruption.

"Congress must exercise restraint in looking for ways and means to finance government programs and operations," he said.

Apple launches new operating system

Apple launches new operating system
Tuesday, September 8, 2009 | MANILA, PHILIPPINES
http://www.bworldonline.com/BW090809/content.php?id=093

Apple launches new operating system

MacOS X

APPLE COMPUTER Inc. launched last week its latest operating system here in the Philippines that hopes to revolutionize the use for modern day personal computers. Apple has positioned this as an under-the-hood upgrade whose new features and enhancements are accessible at a pocket-friendly price.

"Apple added core technologies to modernize the future of MacOS X," Darren Sng, senior manager of software product marketing for the region, told reporters at the launch.

The Mac OS X10.6 or "Snow Leopard" hinges on a decade of OS X innovation, with hundreds of refinements to upgrade for Mac OS X Leopard. It is the only desktop operating system with built in support for Microsoft Exchange Server 2007.

Eraño "Ka Erdy" Manalo laid to rest

Eraño "Ka Erdy" Manalo laid to rest
GMANews.TV - Monday, September 7
http://ph.news.yahoo.com/gma/20090907/tph-inc-executive-minister-erao-ka-erdy-d6cd5cf.html




Eraño “Ka Erdy" Manalo, the Executive Minister of Iglesia ni Cristo, was laid to rest Monday noon at the Tabernacle at the religious group’s Central Complex in Quezon City.

Manalo passed away last August 31 at the age of 84.

President Gloria Macapagal Arroyo arrived earlier in the day to attend Manalo’s funeral, according to GMA’s Flash Report.

Among those who paid their last respects to Manalo on Monday included Vice President Noli de Castro, President Joseph Estrada, his wife former Sen. Luisa “Loi" Ejercito, their son Sen. Jose “Jinggoy" Estrada, former First Lady Imelda Marcos and her son Ilocos Norte Rep. Ferdinand “Bongbong" Marcos Jr., and Senators Loren Legarda, Ramon “Bong" Revilla Jr., Manuel Roxas II, and Miguel Zubiri.

Last night, among those who visited the wake were Estrada and First Gentleman Jose Miguel Arroyo.

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Cabinet members including Agriculture Secretary Arthur Yap and Finance Secretary Margarito Teves also attended the burial rites, which was aired live over the INC-owned television network Net 25.

On Monday morning, Manalo’s remains were brought to the INC’s Sanctuario for final viewing by church members. The Sanctuario is located beneath the INC Central Temple. At about 11:30 a.m. the casket was taken to the nearby Tabernacle.

Manalo’s flower-decked white tomb lay at the center of the cavernous Tabernacle. It will be his temporary burial site while a mausoleum is being constructed beside the monument of his father, INC founder Felix Manalo.

Before the interment, Manalo’s casket was draped with an Iglesia ni Cristo flag and carried by eight INC ministers clad in barong tagalog and wearing black armbands.

After the INC flag was folded, Manalo’s casket was covered with the Philippine flag and opened for the last time for final viewing by his family. The flag was removed and folded by seven honor guards before the casket was placed in the tomb. Outside the temple, honor guards gave a gun salute while the funeral was taking place.

Loud cries rose from the congregation while Manalo’s casket was being placed inside the tomb shortly after 12 noon.

Pall of gloom

Two projection screens were mounted outside the INC Central Complex along Commonwealth Avenue, where thousands of INC members were gathered, so that those who could not enter the premises could view the funeral services.

A pall of gloom hovered among the members who braved the rains and who were seen crying while viewing the solemn rites.

Anthony delas Alas, a member of INC Sto. Tomas, Batangas Local went to the Central Temple last night with his family and other members of his community.

“Pumunta kami rito para maki-luksa. Kilala ko si Ka Erdy na mabait, matulungin sa nangangailangang kapatid, magaling sa tagapamahalang pangkalahatan. Natulungan niya ako, dahil siya ang nag-akay sa mga tao para maligtas," Delas Alas said.

Pauline Baddas, a Pangasinan native, had been camping outside the Central Temple since Sunday afternoon.

She said she and her family rented a van so they could go to the Central Temple and pay their respects to Manalo.

Baddas said that while she may not have any personal experience with Manalo, “Marami na siyang natulungan talaga (He has helped a lot of people)."

Earlier in the day, police said they beefed up security near the INC Central Complex in preparation for Manalo’s interment.

Quezon City police director Chief Superintendent Elmo San Diego said he deployed about 500 of his men, and additional community volunteers. The National Capital Region Police Office (NCRPO) also sent about 100 policemen.

Also on Monday, the Metropolitan Manila Development Authority (MMDA) appealed to motorists to heed the rerouting plan for the day. - GMANews.TV

Noynoy for president in 2010

Noynoy to run for president in 2010
By Dennis Carcamo
Philstar.com - Wednesday, September 9
http://ph.news.yahoo.com/star/20090909/tph-update-noynoy-run-president2010-541dfb4.html




MANILA, Philippines -- Sen. Benigno "Noynoy" Aquino III officially announced his decision to run for president (as the Liberal Party's standard bearer) in the 2010 elections at the historic Kalayaan Hall in Club Filipino, Greenhills, San Juan City, this morning (Sept. 9).

"Tinatanggap ko ang hiling ng sambayanan. Tinatanggap ko ang habilin at tagubilin ng aking mga magulang...Bayang Pilipinas, tatakbo ako sa pangpanguluhan sa 2010, " Aquino said.

He made the announcement on the the 40th day of the death of his mother, the late President Corazon Aquino, who died of colon cancer last Aug. 1. In Filipino tradition, the 40th day after a person's death is the end of the grieving period for the relatives of the deceased.

Kalayaan Hall is also where Mrs. Aquino was sworn into office after ousting the late strongman Ferdinand Marcos after the Edsa People Power Revolution in 1986.

Aquino also said he has chosen LP president Mar Roxas as his running mate but he is still waiting for his reply if he will accept the offer or not.

Roxas announced last Sept. 1 his withdrawal from the 2010 presidential race to give way to Mrs. Aquino's only son. The LP president likewise made the announcement at Club Filipino.

Aquino did not immediately accept the challenge, saying he will first go on a spiritual retreat to help him decide on the matter.

LP senatorial cast

Aquino then announced some of LP's senatorial candidates. They include former senator Franklin Drilon, Sen. Rodolfo Biazon, and Akbayan party-list rep. Riza Hontiveros-Baraquel.

Meanwhile, a certain Gloria Alcuaz of the group Kubol ng Pag-asa passed a can around marked "Piso para kay Noynoy (A peso for Noynoy)" to solicit contributions for the Aquino's campaign.

"Ang problema ko eh pano ito lahat ililista (My problem would be how to list them all)," Aquino said in jest, referring to the contributions.

The young senator reiterated that it would be impossible to launch a traditional campaign this late, as it would entail raising billions of pesos for logistics and operations.

Aquino's relatives and siblings joined the estimated 200 supporters present during the event. His girlfriend, Valenzuela Councilor Shalani Soledad, was also in attendance. - By Dennis Carcamo (Philstar News Service, www.philstar.com)

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Aquino's son to run for Philippines president
AFP - Wednesday, September 9
http://ph.news.yahoo.com/afp/20090909/tap-philippines-politics-aquino-announce-5cc1ef8.html


MANILA, Philippines (AFP) - – Benigno Aquino announced on Wednesday he would run for president of the Philippines in next year's polls, looking to continue the work of his famous mother who overthrew dictator Ferdinand Marcos.

"I am accepting the responsibility to continue this nation's fight. I am accepting the challenge to lead this fight. I am running for the presidency in the coming election," Aquino said.


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Noynoy declares 2010 presidential bid
http://ph.news.yahoo.com/abs/20090909/tph-noynoy-declares-2010-presidential-bi-8061bf7.html
ABS-CBN - Wednesday, September 9


Benigno "Noynoy" Aquino III declares he is running for president in 2010 at a press conference in Club Filipino in Greenhills, San Juan City, September 9, 2009.

MANILA - Senator Benigno "Noynoy" Aquino III, son of democracy icon Corazon Aquino and national hero Ninoy Aquino, on Wednesday finally declared that he is running for president of the Philippines in 2010.

"Bayang Pilipinas, tatakbo po ako sa pagkapangulo sa darating na halalan. Itutuloy natin ang laban (Philippines, I will run for president in the coming elections. We will continue the fight)," Aquino declared in Club Filipino in Greenhills, San Juan City.

The declaration was timed with the 40th day after the late President Aquino's death.

"Tinatanggap ko ang hiling ng sambayanan. Tinatanggap ko din ang bilin at tagubilin ng aking mga magulang. Tinatanggap ko ang responsibilidad na ituloy ang laban para sa bayan (I am granting the people's wish. I'm accepting my parents' request. I am accepting the responsibility to continue the fight for the country)," Aquino said.

The senator made the announcement after spending several days in the late President Aquino's favorite convent in Zamboanga City, which was one of the requests of his sisters before coming up with a declaration on his presidential run in 2010.

Aquino, meanwhile, said he is waiting for Senator Mar Roxas to decide on his request to become his running mate in 2010.

Roxas, the Liberal Party's supposed standard bearer, decided to withdraw amid clamors for Aquino's run for the presidency.