Senate version is a Levy not Tax on Text

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.

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