Friday, July 3, 2009 | MANILA, PHILIPPINES
Economy
DAVAO CITY — The Computer Manufacturers, Distributors and Dealers Association of the Philippines (COMDDAP) will ask the government, through a position paper to be submitted next month, to reduce taxes and fees on information technology (IT) products to help the industry weather current difficulties.
Members of the group are here for COMDDAP’s annual exhibit that runs from July 2-4.
"We will request the government to grant exemption [from select taxes and fees] on IT products," said Salvador L. Lastrilla, chairman of COMDDAP Davao, claiming, for instance, that "most countries in Asia do not put value added tax on IT products."
He said this is needed to spur demand among consumers, who have become more cautious in their spending. He noted that prices of IT products have slipped by an average 2%-3% this year.
Jefferson T. Plaza, COMDDAP president, said the problem is that every imported hardware and software is slapped with various taxes and fees. "Every license adds to cost; if we buy a mouse and there’s a CD [compact disc], it has to be licensed with OMB [Optical Media Board]," he noted.
Mr. Plaza admitted, however, that the government may not be open to his group’s plea due to the need to raise revenue collections to finance spending on efforts to spur economic activity.
Leaders of the House of Representatives ways and means committee, from which tax-related bills emanate, were not immediately available for comment.
But Finance Undersecretary Gil S. Beltran said by phone that "If we are going to provide tax cuts to every item that we buy, how can we raise revenues and stimulate the economy?"
Despite difficulties, Juan G. Chua, COMDDAP treasurer, said organizers proceeded with the annual event to showcase the latest products to consumers who are already aware of general benefits IT products offer. —JBE
http://www.bworldonline.com/BW070309/content.php?src=1&id=052
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