Press Release
September 29, 2008

No additional taxes to be imposed upon 60-M texters, Gordon assures

Independent Senator Richard J. Gordon today assured that there will be no additional taxes that would be imposed upon the 60-million mobile phone subscribers once his measure requiring telecommunication companies (telcos) to remit a substantial portion of their annual net revenues from local text message to fund the country's education and health requirements is enacted into law.

Gordon made the assurance as he thanked House Speaker Prospero Nograles for his support to Senate Bill (SB) 2402, which aims to augment government resources for the rehabilitation and acceleration of the education system and health programs in the country.

"There is no additional tax in this measure and this would not be passed on to the millions of texters. The idea is that, telcos would share part of their earnings and not pass the brunt to the consumers," he said.

"I believe that through this measure, people would patronize the services of telcos and text even more, knowing that every text message they send is a concrete contribution to the improvement of the education and health of our school children," he added.

Gordon explained that the country should invest in the future of our school children, stressing that the measure only requires telcos to remit part of what they are presently charging consumers for every text message sent.

"We should stop paying lip-service to our youth. Instead, we should strengthen the country's educational system so that we can fight poverty. Poverty is an absence of choice. Our support to this measure therefore is our investment to the future of our youth," he said.

Once enacted into law, SB 2402, known as the Health and Education Acceleration Program (HEAP), will generate some P73 billion more than to bankroll the financial requirements of P18 billion to address the country's backlogs in education and health care services.

>From an estimated 400 million text messages sent per day with each text message at the cost of P1.00, half of which -- or P0.50 -- would go to the HEAP Corporation, Gordon explained that the government would collect P73 billion in one year alone.

"In a year's time, we can eliminate shortages in education and health infrastructures. In the succeeding years, we can sufficiently provide computer units for all public school pupils. They will also be better fed, given vaccinations against diseases, and access to regular, free dental services," he pointed out.

Gordon, chairman of the Senate government corporations and public enterprises committee, said he is open to thresh out details of the revenue-sharing scheme between the government and the telcos to come up with a better agreement.

With their corporate conscience, he added that the giant telcos would yield to the present provisions of the bill since they are earning billions in text messages alone as evidenced by their flood of advertisements and promotions.

The Senator also said he is very optimistic that the bill would be passed into law especially with the continued support among different groups and personalities.

"I have been roaming the country to inform people about this bill, and a lot of people have expressed their support to this initiative. The teachers are very much pleased that there will be a law that would address not only students' concerns but also the teachers' interests," he said.

Aside from Speaker Nograles, those who also have expressed support to the HEAP bill are Caloocan Mayor Recom Echiverri and his son, Liga ng mga Barangay President RJ Echiverri, and the Kiwanis International and the Philippine Dental Association, among many others.

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