June 2, 2004
Philippine gov't revives plan to tax text messaging
The Philippine department of Finance, unmindful of the flak it would get, is reviving its plan to tax cellular-phone text messaging, arguing that the heavily indebted government had every reason to pursue such measure, reports INQ7money.
"It is an inherent right of the State to impose taxes," said a high-ranking finance official, adding that text messaging had characteristics that made it "excisable," or liable for excise tax.
The official, who spoke on condition of anonymity, said "too much texting," especially of jokes, made the activity go beyond being a necessity. As such, texting becomes liable to excise tax, an impost on such items as alcohol, cigarette, luxury vehicles and jewelry.
"We have a reason to tax texting because too much of it clogs the system and it encroaches on what are supposed to be productive working hours," the finance official said.
The proposal to tax "texting" is considered by some members of the business sector as a drastic measure to solve the government's gaping budget deficit. The government aims to keep the deficit at no more than 197.8 billion pesos this year."
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