Tax on text messaging...papayag ba kayo?

[Zeus]

Tax on text messaging can raise P40B for the gov't-NTRC

[SIZE=2]The proposed tax on text messaging could raise as much as P40.2 billion for the government, a study conducted by the National Tax Research Center (NTRC) showed.[/SIZE]
[SIZE=2]The Philippines is considered as the text messaging capital of the world.[/SIZE]
[SIZE=2]The study on the feasibility of imposing a tax on text messaging or short message service (SMS) offered by telephone companies showed that the proposed P0.50 per tax message could raise P36 billion in specific excise taxes and additional P4.31 billion in value added tax collections.[/SIZE]

[SIZE=2]On the other hand, the government could raise P5.54 billion if it imposed a 10 percent ad valorem rate per text message and P664.3 million in additional VAT collections.[/SIZE]

[SIZE=2]In computing the revenue take under the proposal, the NTRC used the 2005 annual report of Philippine Long Distance Telephone Co. (PLDT) and Ayala-controlled Globe Telecom Inc.[/SIZE]

[SIZE=2]The reports showed that Smart Communications and Pilipino Telephone Corp., which are controlled by PLDT, as well as Globe have combined subscribers of 32.82 million. [/SIZE]
[SIZE=2]At an average of six text messages per day, these subscribers send at least 196.87 million text messages per day.[/SIZE]

[SIZE=2]The National Internal Revenue Code (NIRC) provides the imposition of excise tax on goods manufactured or produces in the Philippines for domestic sale or consumption or for any disposition. In addition, the code calls for the imposition of VAT for every sale of goods or services.[/SIZE]

[SIZE=2]The two major forms of excise tax are specific tax that imposes a fixed amount based on weight or volume capacity or any other physical unit of measurement, as well as ad valorem tax that imposes a percentage tax rate based on the selling price or other specified value of the goods.[/SIZE]

[SIZE=2]A total of seven bills have been filed from the 11th Congress up to the 13th Congress seeking to impose among others a seven percent Computer Education Tax, a seven percent Vocational and Technological Tax, a P0.50 specific tax per text message, and a 10 percent ad valorem tax on all cellular phone calls.[/SIZE]

[SIZE=2]However, the NTRC warned that the proposed tax on text would be regarded by some as anti-poor and restrictive because text messaging is a cheap form of communication.[/SIZE]

[SIZE=2]Furthermore, it added that the additional burden would most likely affect those belonging to the low and middle-income class groups. About 97 percent of the subscribers of telephone providers are pre-paid subscribers while only three percent are post-paid subscribers.[/SIZE]

[SIZE=2]It pointed out that the bills filed in Congress were strongly opposed by consumer groups led by the Txtpower and Association of Concerned Texters stating that the proposals were anti-poor and unconstitutional since it is a restriction on the freedom of expression.[/SIZE]

[SIZE=2]The research body cited that the proposed tax on text messaging likewise sparked outrage in Italy and other parts of Europe.[/SIZE]

[SIZE=2]To be fair, the NTRC said voice communications and other forms of communications must also be taxed.[/SIZE]

[SIZE=2]"If the policy is to tax text messaging for revenue purposes, other forms of communication must also be covered on equity ground," NTRC said.[/SIZE]

[SIZE=2]Multilateral lending agencies led by World Bank, Asian Development Bank, and International Monetary Fund stressed the need for the Philippines to improve its revenue base to sustain fiscal and economic gains.[/SIZE]


Source: ABS CBN News

[claRkEnt]

ok lang kung may pinupuntahan maganda yung mga taxes eh. Problem is, they keep on looking for revenue sources but tax collection efficiency is not even reaching 50%. And then, the collected taxes are still passing through the great hands of corrupt officials!

[boybi]

pano nila ita-tax ang mga prepaid? nao-audit ba ng BIR ang mga prepaid cards, and most especially yung mga pasaloads? kawawa dito mga post paid plan subscribers, walang lusot.

[Altis6453]

This is double taxation. The charge on SMS service is already subject to the 12% EVAT which is basically a tax on consumption. The proposed tax serves to tax the same activity twice,during the same period, for the same purpose.

[GerardTagayty]

^^^^ Word!!

[BoEinG_747]

Mukhang matindi ang pangangailangan

[mazdamazda]

This is double taxation. The charge on SMS service is already subject to the 12% EVAT which is basically a tax on consumption. The proposed tax serves to tax the same activity twice,during the same period, for the same purpose.

I would disagree partly with that...

I work for a mobile telco company and there's no tax specific for text messages. VAT is applicable to the load or MSF but not on the service per se.

IMO - the reason that the NTRC is proposing this is because telco companies have been exploiting this "loophole" by offering "free" SMS or calltime on top of the usual prepaid load or MSF.

pano nila ita-tax ang mga prepaid? nao-audit ba ng BIR ang mga prepaid cards, and most especially yung mga pasaloads? kawawa dito mga post paid plan subscribers, walang lusot.

All activities of the prepaid subs are captured in a telco's network elements. All your activities can be traced regardless if it is a prepaid or postpaid subscriber.

[cutedoc]

daming tax la ka naman makikitang improvement, tsk tsk tsk

[j_avonni]

Tax ina naman?

[boybi]

All activities of the prepaid subs are captured in a telco's network elements. All your activities can be traced regardless if it is a prepaid or postpaid subscriber.

do the BIR have unrestricted access to the telco's network elements?

[oldblue]

malamang sa prepaid card, witholding tax ang ipapatupad hahaha. kuha na kagad ng BIR mag-text ka pa lang by automatically subtracting the tax. mas madali mauubos pasaloads and prepaid credits.

[Ry_Tower]

Telcos fined for failing to reduce rates by P.20 - Manila Standard Today

Hmmm. If they want add'tl tax on telco's dapat dun sa luxury products or services not sa necessity like text messaging.

Furthermore maganda punto ni Chiz, per second charging sana sa calls at auto rebate sa dropped calls!

[av8or5]

I would disagree partly with that...

I work for a mobile telco company and there's no tax specific for text messages. VAT is applicable to the load or MSF but not on the service per se.

IMO - the reason that the NTRC is proposing this is because telco companies have been exploiting this "loophole" by offering "free" SMS or calltime on top of the usual prepaid load or MSF.



All activities of the prepaid subs are captured in a telco's network elements. All your activities can be traced regardless if it is a prepaid or postpaid subscriber.

bro..i beg to differ. all text price is inclusive of evat. so your P1 text 12% of the P1 goes already to the government.

postpaid subscribers free sms and calls are part of the Monthly service fee customers pay and yes... kasama na rin ang evat doon sa MSF nila

therefore..its true..if they implement more tax for consumers..its almost double taxation.

[Syuryuken]

Sa atin na nga ipinasa yung dagdag na tax sa mga mobile company tapos tax na naman sa SMS kung naaalala ninyo yung 100 free text messages sa 300 pesos prepaid card naging 36 free text na lang.

[Altis6453]

I would disagree partly with that...

I work for a mobile telco company and there's no tax specific for text messages. VAT is applicable to the load or MSF but not on the service per se.

IMO - the reason that the NTRC is proposing this is because telco companies have been exploiting this "loophole" by offering "free" SMS or calltime on top of the usual prepaid load or MSF.



All activities of the prepaid subs are captured in a telco's network elements. All your activities can be traced regardless if it is a prepaid or postpaid subscriber.

As far as I know, the total charges for SMS messages are added to the total voice calls and fixed charges. Then the VAT of 12% is added to this amount to arrive at the total amount due. Its not true that the SMS is not already subject to tax.

[chua_riwap]

Sana nga. Baka TRO ulit......