Taxing Text Messages?

Makarand writes "SMS is a very popular way of communication in the Phillipines with an estimated 14 million phone subscribers sending an average of 10 text messages a day. However, that may all change if a proposal from the IMF to impose a tax on SMS is implemented to solve the country's fiscal problems according to an article in The Straits Times. The IMF is basing its suggestion on the fact that the country's tax base currently rests on the troubled sectors of the economy- banking and manufacturing, which cannot be squeezed anymore. Hopefully, our political think tanks will not get any such ideas."

Comments

What's the problem?

[neksys]

14 million subscribers sending 10 messages a day is 140 million messages. If the tax worked out to 1/10th of a cent on each message, the total cost to the user would be 1 penny each day - certainly not an unmanagable amount. That works out to $140,000 a day - or $51.1 million a year. That's a sizeable amount of cash. This is one of those cases where the effect to the consumer is nearly nil, but the economic benefits to the country are quite large. We should be congratulating the Phillipines for finding a new and unique way to find money in an economically unstable region, rather than criticize. It certainly beats putting huge amounts of tax on addictive or necessary products such as cigarettes and gasoline like we do here in North America, which I've always thought of as really sneaky and low.

Re:What's the problem?

[Izeickl]

Heh yep, not trolling, but if you had the same amount of tax on fuel etc in the states as there is in the UK you would all soon quickly get rid of your gas guzzlers. UK pays about 75.7 pence per litre, while US pays 25.8 if my source is accurate : http://www.see-search.com/business/fuelandpetrolpr iceseurope.htm

what about..

[nick-less]

... charging a tax of 2 cent for every spam mail sent

The IMF is a Scam

[hanwen]

I recently read an article on the IMF.

The IMF is a vehicle for implementing a policy that is designed to make poor nations poorer, and the US based financial world richer.

The IMF has a standard approach of privatization, deregularization, more taxes and less government spending. In practice, state assets are sold off to foreign investors, and capitals markets are deregulated to open the gates for speculation. At some point the price of basic living (cooking, heating, taxes) is raised, causing massive civil unrest, and collapse of the economy. In the ensuing turmoil, foreign corporations can buy the remaining assets of a country at garage-sale prices.

Don't take my word for it. Read about Joseph Stiglitz (Nobel laureate, former IMF economist and former director of the worldbank)

• salon
• The Observer
• The new republic online.

Or name a country where IMF intervention did work: (it failed in Indonesia, Thailand, Russia, Brazil and Argentina)

No, it's a hoax

[shoppa]

The "US E-mail tax" is a hoax that's been around for years. See this link for details on the hoax, and in particular these rebuttals:

• Congress to Block Imaginary Internet Tax Bill from the Washington Post
• E-mail Rumor Completely Untrue from the United States Postal Service
• E-mail Tax Hoax from the US Department of Energy's Computer Incident Advisory Capability
• No Consumer Per-Minute Charges to Access ISPs from the Federal Communications Commission

I hate to say this, but the idea of doing this in the Phillipines (especially the imposition by a non-Phillipine organization) makes the the referenced newspaper article sound like a hoax too.