Philippines set to pass tax on text messages

The Philippines is in the process of passing legislation to raise millions of dollars in tax revenue through a proposed 1cent tax on each SMS and MMS sent by the country’s 70 million mobile phone users.

Consumer group TXTPower is urging citizens to “rebel” against the proposed tax, which the cash-strapped Government says would be used to increase its education budget by US$500 million a year.

But the bill has already passed Manila’s lower house, despite the existence of a 12% Government tax on mobile phone services.

Text messages have a strong political tradition in the country. In 2001, revolutionary groups used SMSs to urge thousands of citizens into the peaceful street demonstrations that tipped Joseph Estrada from presidency.

The Philippines is one of the world’s biggest texting countries on a per capita basis, sending more than 300 million messages each day.