Sunday, August 15, 2004
Speak out: We’ve been taxed already
By Ipher Q. Tabanag
Subangdaku, Mandaue City
The current protests over President Gloria Macapagal Arroyo’s proposed tax measures particularly the tax on text messages have reached sky high.
But what is it or what is it all about?
The truth is, tax on text messages has long been imposed, on us, even before text messaging became a wild passion for students, professionals, overseas Filipino worker, everybody: housewives, trisikad drivers, etc.
The expanded Value Added Tax (VAT) law (Republic Act 7716), which took effect more than eight years ago or since Jan. 1, 1996 already imposes a 10 percent VAT on the income of telecommunication companies. This is under Sec. 108.
The income of telecommunication firms includes telephone and text message fees. VAT, being an indirect kind of tax is therefore passed on by the said firms to us, the end users.
And this has been going on for more than eight years now.
(August 15, 2004 issue)
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