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Camille P. Balagtas
People's TONIGHT
September 9, 2002

PIMENTEL SAYS BARANGAY EXECS MUST BE STRIPPED OF POWER TO RECALL LOCAL OFFICIALS
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Senator Aquilino Q. Pimentel, Jr. (PDP-Laban) today said Congress should amend the Local Government Code (Republic Act 7160) to strip barangay officials of the power to initiate recall elections in case they are not satisfied with the performance of the mayor and other elected city or town officials.

Pimentel bewailed that this recall power is being taken advantage of by unscrupulous politicians to promote selfish ambitions and to harass elected local officials.

"It is being used as a partisan political weapon, and I think that is not right. It should be abolished," he said.

He said there should only be one mechanism to remove abusive and incompetent mayors and local officials, and that is for the residents or voters to directly initiate the recall and holding of a new election.

Pimentel said the phase out of the Preparatory Recall Assembly (PRA), composed of barangay chairmen and councilmen, is one of the 152 amendments to the code he is pushing under Senate Bill 826 which he had filed last year.

Pimentel, principal author of the Code, explained that the provision on the PRA was not contained in the original draft of the Code that he presented in Congress 11 years ago.

But he said the provision on the PRA was inserted into the final version of the Code upon the insistence of a group of congressmen led by Zamboanga del Sur Rep. Wilfred Cainglet (now deceased.)

"Since they were pressing hard for its inclusion, I was forced to accept their proposal to avoid further obstacles. Otherwise, the approval of the Code would have suffered a delay," the senator from Mindanao said.

Pimentel said it is his intention that the recall power is not the business of the barangay officials since it is not they but the community of voters who had elected the town or city executives.

He said his original proposal was for the people themselves to directly initiate the recall by gathering the signatures of a given percentage of the voting population in the recall petition.

There is now a recall move against Taguig Mayor Sigfredo Tinga. The move is being spearheaded by the camp of Rep. Alan Peter Cayetano.

The Commission on Elections has already approved the holding of a recall election in Puerto Princesa City. ///camille p. balagtas


Camille P. Balagtas
People's TONIGHT
September 9, 2002

NEW TAX ON PRE-PAID CELL CARDS LACKS SUPPORT IN THE SENATE
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At least three senators lambasted the proposed imposition of tax on the prepaid cards brought by celfone subscribers, describing the move as anti-poor.

Sen. Ralph G. Recto, chairman of the ways and means committee, said "any unreasonable burden on cellphone usage whether for post-paid or pre-paid would be opposed by consumers and advocates in the Senate. It will share the fate of the unlamented tax on text messages."

"Government's desire to collect the VAT when the cards are issued by the companies is a tax administration issue and should not be replaced by a new burden on consumers who pay VAT whenever they buy pre-paid cards."

Recto reiterated his "no-new-taxes" stand and assured cellphone users that no bill has yet been filed in Congress nor a proposal transmitted from the Finance department calling for a new tax on cellphone usage.

"The BIR should be clear on whether it is plugging a loophole or merely narrowing the lag time from actual VAT payment - at the time of card purchase - up to VAT remittance to the BIR. Government wants to collect VAT upon issuance of the cards."

"Plugging a loophole which presumes tax evasion based on underreporting by cellphone companies can be a subject of a legal action by the BIR and not by a new tax on pre-paid users."

Recto explained "to be threshed out are National Internal Revenue Code provisions that allow cellphone companies to book sales of pre-paid cards at the time it ends up in the hands of the end-consumer."

"Likewise, pre-paid card sales are treated as a consignment transaction and deemed a sale only after 60 days. These allow cellphone companies to hold on to VAT payments regardless of whether these were sold ahead of the 60-day limit on consignment sales."

Recto assured cellphone users that the issue to be addressed "is transparent reporting of sales and VAT payments on pre-paid cards. This is to be resolved between the BIR and cellphone companies, not between the BIR and cellphone users."

Senator Manuel Villar said the target of this move is directly hitting millions of ordinary Filipinos for whom texting is already a way of life.

"While we realize the need to raise added revenues to address the widening budget deficit, the burden must not be passed on to consumers," said Villar, Chair of the Senate committee on Finance.

And just like Recto, Villar blamed the inefficiency of tax collectors and revenue generating agencies like the BIR.

"Any added tax on the use of cellphones clamps down on an effective means of communication that is already an indispensable part of the lives of millions of Filipinos.

Villar proposed that instead of thinking up additional taxes to curb the deficit, Villar says government should concentrate on improving tax collection efficiency.

"Creativity must not be geared towards new taxes but on schemes that willmake revenue agencies such as the BIR and Customs meet their targets," said Villar

Senator Tessie Aquino-Oreta assailed the Department of Finance for this alleged unreasonable move.

If the government really wants to make a more active and direct presence in the telecoms industry, Oreta said the best way for it to do so is not to cock up new taxes that would hurt the small subscribers but to order the inutile National Telecommunication to enforce pro consumer policies like the drastic cut in the cost of voice calls, which the NTC has yet to implement. ///camille p. balagtas


 

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