BY REGINA BENGCO

MALACAÑANG yesterday took back its statement supporting the tax on text messaging, saying there was no concrete Cabinet proposal on it.

"Siguro bawiin na lang natin sa text. Ang reality, hindi ito pinag-uusapan. There has never been a concrete proposal on tax on text," Press Secretary Ignacio Bunye said.

Bunye said the tax on "texting" was just a "side issue" to the main issue of the reduction of the tariff on oil imports and the proposal to postpone the value added tax on oil products.

"It was not in the agenda of the Cabinet," he said.

On Tuesday, President Arroyo ordered a 1 percentage point reduction in the 3 percent tariff on oil imports as part of mitigating measures on the rising world oil prices.

On Wednesday, Trade Secretary Peter Favila said he was in favor of imposing a tax on text messages as an additional source of revenue in the light of proposals to scrap or suspend taxes on oil products. The following day, after receiving a barrage of "hate text" messages, Favila said some reports misquoted him as saying he was proposing the revival of the tax on text. He said he was merely expressing support "if there is a proposal" in the wake of the reduction on tariff on oil.

Malacañang has rejected the proposal of Sen. Manuel Roxas II to suspend the 12 percent value added tax on oil products for six months because it would entail a P60 billion revenue loss annually and would wreck the VAT structure.

House majority leader Arthur Defensor said the House would remain firm on its stand not to entertain proposals for new and additional taxes until the middle of the year.

"Bahagi ng aming commitment sa publiko na walang buwis na tatalakayin o ipapasa ngayong First Regular session of the 14th Congress," he said.

The finance department is considering an increase in the taxes of cigarette and alcohol products or "sin taxes" because of the shortfall in collections.

Defensor said that while bills seeking additional taxes can be filed and deliberated upon in the committee level, passing it in plenary "is another question."

Rep. Eric Singson (LP, Ilocos Sur), deputy speaker for Luzon, blamed graft and corruption for the 40 percent uncollected taxes from cigarettes and alcohol.

"Binubulsa siguro ng mga collection agents, base iyan sa mga nakakausap natin – kung paano sila nagbabayad at kung paano ginagawa," he said.

Singson said Finance Secretary Margarito Teves should accept the blame and curb the problem of corruption in the Bureau of Internal Revenue and Bureau of Customs. – With Wendell Vigilia