Chiz slams IMF
proposal to tax text
By Office of Senator Chiz
Escudero
November 19, 2012
PASAY CITY –
Senator Chiz Escudero opposed the proposal to raise tax on text
messaging to boost government revenues by International Monetary
Fund’s (IMF) Chief Christine Lagarde during her visit to the country
over the weekend.
“It is not for any
institutions or any foreign entities for that matter to dictate upon
us what to and what not to tax. IMF and its chief has no business in
even suggesting that we impose tax on text. The power to tax is
inherent in Congress and any external intervention is already meddling
with our sovereignty” Escudero said.
Lagarde in a press
conference in Malacañang, suggested that telecommunication services
are mines for new source of taxation because of its wide base of 102
million subscriptions.
She said that passing the
sin tax bill would be “great progress for the revenue collection of
the country” and added that “if more is needed in the pure decision of
the government of the Philippines, then telecommunication would
satisfy those two criteria,” referring to text messaging and calls.
Escudero, chairman of the
Senate committee on justice and human rights said Lagarde’s suggestion
is skewed, if not so unfeeling, granting that it has a place in our
economic affairs.
“I strongly oppose this
foreign meddling and even the idea behind it. Ms. Lagarde is better
off making suggestions to her fellow Europeans who can perhaps learn a
thing or two from us”.
The senator said taxation
should be based on the ability of taxpayers to pay. He said text
messaging is so ingrained among the lower socio-economic strata with
about 90 percent of mobile phone users have pre-paid lines. “Instead
of providing relief for the Filipino public, this twisted idea of
taxing text is an additional burden to the masses”.
Escudero said he will block
the proposal if and when it reaches the Senate. “If at all, why not
set our sights on taxing luxury goods such as motor vehicles and
jewelry instead of taxing text messages?”