MANILA, Philippines—The House of Representatives is backing off on its plan to slap a five-centavo tax on text messages, apparently feeling the heat of public resistance to increase the cost of texting.

The House ways and means committee has agreed to revert back to the proposed bill on the text tax barely two weeks after approving it for plenary voting on Sept. 8.

Cagayan de Oro Rep. Rufus Rodriguez said Congress should give more thought to the tax on text by conducting more public hearings to get the sentiment of consumer groups who would be directly affected by the additional levy that was supposed to generate P36 billion in new revenues annually.

Committee members concurred with Rodriguez’s motion as only Antique Rep. Exequiel Javier was present among the three authors of the text tax bill. Quezon Rep. Danilo Suarez was with President Gloria Macapagal-Arroyo in Saudi Arabia while Ilocos Sur Rep. Eric Singson was absent.

Tax for computer literacy

Singson’s House Bill 6625 proposes “a specific tax equivalent to five centavos for every overseas dispatch, message or conversation transmitted from the Philippines by telephone, telegraph, telewriter exchange, and other communication equipment services which shall be paid by the service provider” while Suarez’s House Resolution 282 proposes that funds raised will be used for stepping up computer literacy in the country.

Javier said he agreed with the proposal to review the text tax in order to address concerns that the levy would be passed on to users.

Javier, Singson and Suarez had previously proposed that the text tax bill include a provision that would bar telecommunication companies (telcos) from passing on the additional cost to their subscribers.

Tactical retreat

But party-list representatives said administration lawmakers made the tactical retreat for fear it would backlash on their candidates in the 2010 elections.

Kabataan party-list Rep. Raymond Palatino said supporters of the text tax were wary of a “tax revolt” from the millions of texters in the country.

Bayan Muna party-list Rep. Teodoro Casiño said administration lawmakers should just drop the plan entirely as they could just be buying more time to sneak in the text tax.

Globe Telecom counsel Rodolfo Salalima reminded lawmakers that the no pass-on provision was unconstitutional as all private companies have the right to recover all their costs including tax payments.

He also said passing on the excise tax to consumers could lead to “serious constitutional issues.”