Text tax, sign of things to come – KMU

Militant labor center Kilusang Mayo Uno today warned that the proposed text tax is “just a sign of things to come” because of the global financial and economic crisis, saying that instead of imposing new taxes on workers and the people, the Arroyo regime should cut back on the tax holidays given to big businesses in the country.

“Patikim pa lang iyan, that’s just a taste of what’s to come,” said Elmer “Bong” Labog, KMU chairperson, reacting to the committee-level approval of the proposed tax measure in the House of Representatives.

“The global financial and economic crisis is causing credit for debt-dependent countries like the Philippines to shrink. International financial institutions are thus putting pressure on the government to impose new taxes on workers and the people so it can continue to pay its foreign debt,” the labor leader explained.

“Imposing new taxes is one way the global and local elites are passing on the burden of the crisis to the Filipino workers and people,” Labog added, citing the recent World Bank “proposal” to increase petroleum taxes.

The labor leader said that in the Arroyo regime’s haste to comply with the demands of international financial institutions, it is giving the people an unintended education on the kind of anti-people measures that it has in store in response to the crisis.

“What a way to jolt the workers and people into awareness and action! Almost everyone uses text messaging these days. The text taxt could only make us even more vigilant of the anti-worker anti-people moves of the regime and more militant in opposing these, “ Labog said, vowing to oppose the proposed tax measure.

Remove tax holidays instead

The labor leader said the government should cut back on or remove tax holidays given to big businesses in the country, instead of imposing new taxes on the workers and people.

Citing a study by a University of the Philippines professor in 2007, Labog said that “an estimated P47 billion in potential revenue is lost yearly because of these tax holidays.”

“While the regime is most eager to milk the workers and people dry by imposing new taxes on us, it leaves the huge profits of foreign and big local businessmen untouched. That is an injustice,” Labog said. ###