Now with the passing and possible legislation of any of two bills filed separately in Congress reimposing a franchise tax on telecommunications companies, justification to their subscribers of subsequent rates increase in text messaging to cover for the said proposed taxes would be less easy.
Quezon Rep. Danilo Suarez and Ilocos Sur Rep. Eric Singson filed the said bills.
In the Suarez bill, telecommunications companies would be assessed a 3.5-percent franchise tax in the first year of implementation and seven percent in the succeeding years.
The Singson version slaps telecommunications firms a five-percent franchise tax.
Although nobody wants anymore tax, save for many administration politicians who observers say are privy to the sad state of the government coffers allegedly emptied in the last elections but presented more as due to the huge budget deficit, it appears that the tide may be difficult to fight. At this stage additional taxes would be inevitable.
The telecommunications companies, with their mouthwatering ROIs, are arguably one of the first targets of government revenue sniff dogs. But the oil companies should not escape their noses that are highly trained to track down oodles of profits. Of course, the manufacturers and don’t forget their marketing companies of "sin products" should be made to cough up long before the government’s revenue hunters’ sonar devices zero in on the poor Juan dela Cruz or Mang Pandoy.
Tax the text and the government risks getting the ire of the people. Get the money from the backdoor and it will not be as easy for the telecoms company to pass on the burden to the people. But let’s not kid ourselves – they eventually will.
She was saying that despite some fiscal changes that she has initiated, the only way to go to save SSS, aside from a government bailout, which is quite unlikely, presently faced with the ill state of our government’s coffers, is to increase its members’ contributions.
Current figures show that the SSS would be forced to use its reserves by 2008 while it continuously services the needs of its members and its funds completely depleted by 2015, that is, if premium payments would not be raised.
In the interview Cora offered the information that the SSS, since 1999 up to 2003, has spent for payment of pension benefits amounts exceeding the members’ contributions. In 2003, the SSS generated only P39.4 billion in contribution while a total of P42.81 billion was paid in benefits. Simple arithmetic would tell you that such inequity in revenues and spending would eventually spell doom for any business enterprise.
If newspaper reports are right, we now have the government finally seriously aware of the SSS plight.
But that’s only half of the story; the other half is the slow-motioned reaction to such plight. But the positive note in the whole scenario is the government’s awareness. Now let’s wait and see what’s going to be done about this huge problem.
Despite persistent rumors that he may be transferred to another Cabinet position or altogether changed, his performance, which has been endorsed as above par by some sectors in the business community may just see him through. Although we have to see what the expected Cabinet re-shuffle announcements projected this weekend up to the start of next week has in store for our hardworking tourism top honcho.
Mabuhay!!! Be proud to be a Filipino.
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