Tax on text will severely affect OFWs

By MADEL R. SABATER
September 13, 2009, 4:35pm

The Blas F. Ople Policy Center Sunday opposed the proposed five-centavo tax on text messaging, saying it will severely affect Overseas Filipino Workers (OFWs).

Blas F. Ople Policy Center president Susan Ople, in a statement, said the proposal from the House of Representatives will be a “burden” to OFWs, considering that the global economy is still in turmoil.

Ople is the daughter of the late Senator Blas Ople, a former foreign affairs secretary. “This new tax will hit OFW families and their relatives abroad, many of whom rely on text messaging to stay connected with their families,” Ople said.

“Even if there is a ‘no pass-on’ provision in the law, the five-centavo levy will inevitably be shouldered by the consumers, and once you impose a tax, just like in the case of the value added tax (VAT) Law, it will only go up as the need for more revenues rises,” she added.

Ople called on Congress to invite labor and OFW groups to a public hearing on the proposal.

Ople also said the government should address tax leakages and curb unnecessary expenses rather than impose a new tax.

She also urged Congress to implement a new tax measure after the 2010 elections.

“In less than a year, we shall have a new president who will also form a financial and economic team. It is but prudent that we await this turn-over of leadership so that any fiscal and economic reforms can be part of a new vision for the country,” Ople said.

The House ways and means committee last week approved a five-centavo tax on text messaging proposal, which will be a pass-on levy to be used for education.