Byline: BEN R. ROSARIO
A senior administration congressman yesterday filed a bill that would impose a 10 percent ad valorem tax on cellular telephone calls that would adopt the newest telecommunications technology expected to eclipse the popular GSM.
In House Bill (HB) No. 4626,
"During this period of fiscal crunch where the government is saddled with balooning budget deficit and dearth of financial resources to finance its flagship projects, revenues that would be derived from this bill will highly contribute to the national coffers, Suarez, vice chairman of the House of Representatives Committee on Ways and Means, said.
However, the Quezon lawmaker failed to reveal how much government will expect from imposing taxes on the new telecommunications technology.
The bill seeks to amend the National Internal Revenue Code of 1997.
Suarez explained that there has been a fast change in telecommunications technology that the first generation analog system was discarded for the second generation GSM.
The third generation or 3G telecommunications system is expected to improve the performance of mobile wireless networks, he said.
According to him, 3G stands for third generation and is a wireless industry term of a collection of international standards and technologies.
"It is a genetic term covering a range of future wireless network technologies, including Wideband Code Division Multiple Access (WCDMA), Code Division Multiple Access 2000 (CDMA2000), Universal Mobile Telecommunications Systems (UMTS), and Enhanced Date for Globe Evolution (EDGE), he explained.
Under this new technology, current applications on cellular phones will be enhanced, "including greater data speeds, increased capacity for voice and data, and the advent of packet data networks versus todays switched networks.
"This does not just mean fast mobile connection to the World Wide Web by liberating us from slow connections, cumbersome equipment, and immovable access points. 3G will enable new ways to communicate, access information, conduct business and learn, Suarez said.