Is the Philippine government trying to tax bloggers?

That seems to be the case, judging from an inconspicuous proposal posted on the National Telecommunications Commission (NTC) website. Here is the crux of the matter. They want everyone on the Internet to register through them…

Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.

…and then pay fees. A filing fee of Php300 ($7) and an annual registration fee of Php6000 ($133). Whoa!!! I haven’t even made that much from Google Adsense in five years, and I have to pay that amount EACH YEAR just to be able to place a banner ad over my blog??? That’s just crazy!

Stop right there, you say. How do we know if we really are part of this proposal? Well, firstly let’s take a look at what is addressed by the proposal:

Content – refers to all types of contents delivered to/accessed by the users/subscribers such as music, ring tones, logos, video clips, etc.

Information – refers to all types of information delivered to/accessed by the users/subscribers, e.g. road traffic information, financial information, visa application information, etc.

Now that we know, let us ask ourselves whether we, as bloggers, offer either content or information. And the answer is yes, on both counts. Content is definitely an area that some, if not most, bloggers have ventured in. Who hasn’t tried to upload a Youtube video or two? Information, on the other hand, is most definitely blogger territory. That’s what we offer our readers everyday, that’s everything we do.

So we know the kind of data addressed by the proposal. The next step is to analyze whom the proposal really pertains to. Are we actually involved? Well, here are the affected, and my comments in brackets:

Contents Providers – are persons or entities offering and providing contents to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers [If you place advertisements on your Youtube videos, you're a content provider. Or if you sell graphic designs or web templates, you're also a content provider.]

Information Providers – are persons or entities offering and providing information to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers. [Okay, we're talking about the paid bloggers here. In fact, anybody with an ad network like Google Adsense falls under this sweeping definition, and that's like, almost the entire blogging community.]

Contents Developers – are persons or entities creating contents. [Uhhh. The only thing differentiating this term from a content provider is the issue of compensation. Meaning, a content provider is a subset of a content developer. So why even make up a "content provider" if they're gonna tax all content developers anyway? Or do the content providers get taxed TWICE??]

Information Sources – are persons or entities providing information to Information Providers. [Rest assured that if you have any original thought in your body, share it and get taxed.]

Applications Developer – are persons or entities creating applications. [Oh, are you a programmer like me? Too bad, we're getting taxed. Say goodbye to the opensource movement.]

Electronic Games Developer – are persons or entities creating electronic games. [My, my. As though electronic games were not applications. I wonder how many times I will have to get taxed here.]

Man, that’s a whole lot of people the NTC wants to tax. The entire Internet fits in there! In fact, I alone, fit in five categories of people the NTC wants to tax. I am a content provider, an information provider, a content developer, an information source (sometimes), an applications developer and an electronic games developer. So, I guess I should pay NTC a filing fee of Php 1500 ($33) upfront and a registration of Php 30,000 ($667) from now and each year thereafter.

Then, on the matter of scope. How can we be sure that we’re talking about the Internet here? Maybe we are just simply discussing the mobile networks in the country? Well, that’s where the ambiguity of the entire document comes in. While the data and the persons addressed by this document are defined clearly, the scope is not defined at all, only the goals are:

• Promotion of competition in the telecommunications market, where telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates.
• To further encourage the development of contents, information applications and electronic games, the prevailing access charge regime between the contents, information, applications and electronic games providers and the networks providers which is revenue sharing should be replaced by fixed access charge.

Telecommunications is mentioned in the goals, but does the term “telecommunications” solely pertain to the mobile carriers like Smart and Globe? And then, these companies do not serve only the mobile market, but also the data market (they are Internet Service Providers as well), and so if these companies are involved, then are we, as data consumers of these companies, not part of them as well?

It’s nice that the NTC would like the telecommunications market to be more competitive. It’s nice that they think that by enforcing more fees from everybody, that somehow everybody else would experience lower fees (where is the logic in that?). But goals are just goals and not often the end result, especially not from such an ambiguous, all-encompassing proposal such as this.

So, is the Internet involved? Are we, bloggers, involved? Scope is not spelled clearly in this document, but if we forget that for a moment and say that yes the Internet is involved, then yes, we bloggers are definitely involved and are definitely taxable.

So let us not let this proposal be passed into a bill, in its very ambiguous state. Because if it does pass, then only a tiny misinterpretation of the law is needed to spell disaster for bloggers.

It’s the best way to curtail free speech in a third world country. Don’t let this happen.

* * * * *

Here is the full text of the proposal:

2 December 2008 draft

MEMORANDUM CIRCULAR
No. ______________________

SUBJECT: GUIDELINES ON THE PROVISION OF CONTENTS, INFORMATION, APPLICATIONS, AND ELECTRONIC GAMES

WHEREAS, the 1987 Constitution fully recognizes the vital role of communications in nation building and provides for the emergence of communications structures suitable to the needs and aspirations of the nation;

WHEREAS, the promotion of competition in the telecommunications market is a key objective of Republic Act No. 7925 (RA7925, for brevity), otherwise known as The Public Telecommunications Policy Act of the Philippines, which mandates that “a healthy competitive environment shall be fostered, one in which telecommunications carriers are free to make business decisions and interact with one another in providing telecommunications services, with the end in view of encouraging their financial viability while maintaining affordable rates.”

WHEREAS, RA7925 further defines the role of the government to “promote a fair, efficient and responsive market to stimulate growth and development of the telecommunications facilities and services”;

WHEREAS, the provision of contents, information, applications, and electronic games to the consumers creates demand for telecommunication networks and services – the development of contents, information, applications, and electronic games should therefore be encouraged and facilitated;

WHEREAS, the entry of more contents, information, applications and/or electronic games providers in the market will result to lower prices benefiting the consumers;

WHEREAS, to further encourage the development of contents, information applications and electronic games, the prevailing access charge regime between the contents, information, applications and electronic games providers and the networks providers which is revenue sharing should be replaced by fixed access charge;

WHEREAS, in the power sector the consumers can purchase their power requirements from independent power producers – power producers are not subject to nationality requirement;

NOW, THEREFORE, pursuant to RA7925, Executive Order (EO) No. 546 series of 1979, and in order to encourage and facilitate the development of contents and the provision thereof to the consumers, the National Telecommunications Commission (Commission) hereby promulgates the following guidelines:

A DEFINITIONS
1. The following terms as used in this Circular shall have the following definitions:
a. Content – refers to all types of contents delivered to/accessed by the users/subscribers such as music, ring tones, logos, video clips, etc.
b. Information – refers to all types of information delivered to/accessed by the users/subscribers, e.g. road traffic information, financial information, visa application information, etc.
c. Application – refers to all types of applications delivered to/accessed by the users/subscribers, e.g. mobile banking, electronic payments, point of sale service, etc.
d. Electronic Game – refers to games played online except gambling.
e. Contents Providers – are persons or entities offering and providing contents to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
f. Information Providers – are persons or entities offering and providing information to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
g. Applications Providers – are persons or entities offering and providing applications to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
h. Electronic Games Providers – are persons or entities offering and providing electronic games to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.
i. Contents Developers – are persons or entities creating contents.
j. Information Sources – are persons or entities providing information to Information Providers.
k. Applications Developer – are persons or entities creating applications.
l. Electronic Games Developer – are persons or entities creating electronic games.

B REGISTRATION
1. Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.

2. There shall be no nationality requirement for contents, information, applications and/or electronic games providers, contents, applications and/or electronic games developers and information sources.

3. The application for registration shall be filed and acted upon by the Commission not later than seven (7) working days from date of application.

4. The application shall include the following documents:
a. Valid registration from the Securities and Exchange Commission or from the Department of Trade and Industry and Articles of Incorporation;
b. Facilities lease agreement with duly enfranchised and certificated public telecommunications entity; and

5. The Certificate of Registration shall be valid for a maximum period of five (5) years. Applicants for registration may opt to apply for shorter period not shorter than one (1) year. Certificates of Registration shall be renewable.

D FEES AND CHARGES
1. The following fees and charges shall be imposed:

a. Filing Fee : PhP 300.00
b. Annual Registration Fee: 6,000.00
c. Surcharge for late : 50% of the annual registration fee if application
filing of application is filed within six (6) months from date of expiry
for renewal 100% if filed after six (6) months from date of expiry

E RATES
1. The rates shall be deregulated. The contents, information, applications and/or electronic games provider shall inform the Commission of the rates for each of the content, information, application or electronic game offered at least three (3) days prior to the offering of such content, information, application or electronic game. Contents, information, applications and/or electronic games providers seeking increases in rates shall inform the Commission of the details of such increases at least five (5) days prior to the implementation of the increase. The Commission in the exercise of its mandate to protect consumers may not allow the increase. If the Commission does not act on the information within five (5) days from receipt of the same, the contents, information, applications and/or electronic games provider can impose the new rates.

F ACCESS CHARGES
1. Networks, systems and/or facilities providers shall provide access to contents, information, applications and/or electronic games providers upon request and based on an access agreement. Access to the networks, systems and/or facilities of duly authorized providers by registered contents, information, applications and/or electronic games providers shall be mandatory.

2. The access charge shall be negotiated. The access charge shall be cost-oriented and shall not be higher than the prevailing retail rates, not promotional rates, for the service where the contents, information, applications and/or electronic games are offered/provided.

G CONSUMER WELFARE AND INTEREST
1. Contents, Information, Applications and/or Electronic Games Providers shall strictly comply to the provisions of MC No. 05-06-2007 (Consumer Protection Guidelines), MC No. 04-06-2007 (Data Log Retention of telecommunications traffic), and MC No. 03-03-2005 (Rules and Regulations on Broadcast Messaging Service) and its amendments.

2. Complaints from the subscribers/users shall be presumed to be valid. The burden of proof shall be upon the contents, information, applications and/or electronic games providers.

H Sanctions
1. Violation of any of the provisions of this Circular shall be a ground for the revocation or cancellation of the registration as Contents, Information, Applications and/or Electronic Games Provider.

2. The Commission may direct the disconnection of the access to the networks, systems or facilities of authorized providers pending the investigation of a complaint filed by a subscriber/user if the Commission finds that there is strong evidence against the contents, information, applications and/or electronic games provider.

3. Any violation of this circular shall be dealt with in accordance with law.

E Final Provision
1. Any circular, order, memoranda or parts thereof inconsistent herewith are deemed repealed or amended accordingly.

2. This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation and three (3) certified true copies are furnished the UP Law Center.

Quezon City, Phlippines _________________________.

RUEL V. CANOBAS
Commissioner

JORGE V. SARMIENTO
Deputy Commissioner

JAIME M. FORTES, JR.
Deputy Commissioner

* * * * *

This is not a law yet. This is just a proposal, and in fact there was a public hearing earlier this afternoon, at the NTC Executive Conference Room (3rd Floor NTC Building, BIR Road, Quezon City). (Will update you on the outcome of that.) Apparently, the hearing was cancelled. No news on whether it will be resumed later.

Please blog about this topic and air your thoughts. Let us not let the Philippines government take away our right to free speech.

Other bloggers reporting on this story:
Mike Abundo
Tech At Hand

Have you seen this fabulous advert? It’s a spoof of a dinner meeting between the Philippine president Gloria Macapagal Arroyo and the USA President-elect Barack Obama.

It’s a real advertisement that’s being broadcast across Philippine televisions, promoting a cure for stomach cramps. The pill is called Motilium.

The man is actually an Indonesian photographer, named Ilham Anas. Ilham was discovered by the Philippine ad agency TBWA SMP, apparently while looking for a new talent in Indonesia. Lucky they found a president, instead!

The other man playing the Philippine president is a Filipino impersonator and funny (wo)man who goes by the name of Ate Glow. “Ate” is a Filipino prefix for an older sister, while “Glow” is a play on the Philippine president’s name, Gloria.

I made a translation for those who don’t understand Filipino.

Obama: Thank you for a lovely dinner.

GMA: Oh, we’re not done yet. Try our kare-kare. It’s ox. [Kare-kare is a Filipino soup that combines oxtail and vegetables.]

Obama: Okay, sure.

GMA: Guinataang mais! It’s corn. But we use our coconut. [Guinataang Mais is a sweetish Filipino delicacy made of corn kernels cooked in coconut milk. When GMA says "we use our coconut", she refers to the mind.]

Obama: Oh, alright. 

[Obama looks pained, and utters a grunt.]

GMA: Oh my gosh, that’s impatso na. Dispepsya yan no. Ang dami mo kasing kinakain no. Ang Motilium, bilis! [Oh my gosh, that is indigestion already. That's dispepsia! You ate so much, that's why! Get Motilium, hurry!]

[Obama is served the medicine, and he takes it.]

GMA: The impatso will disappear in thirty minutes, no?

[Obama buttons up his tuxedo.]

GMA: Kapeng baracks? [She's referring to the Kape Barako she's serving. Kape Barako is a kind of coffee grown in the Philippines.]

[The two smle and shake hands for the cameras.]

Narrator: Motilium. Bilis disappear ang impatso.

Update: The tables have turned, and I must apologize. At the time that I posted this condemnation of Valley Golf and the Pangandamans, I believed Ms Bambee dela Paz’s blog post to be true. It now appears that her account may be biased, inaccurate and overstated. I say may be, because I am loathe to fully trust unverified sources any longer, as I did in my very embarrassing post below.

More light has been shed on this issue, and the (unofficial) sides of Valley Golf (here, here, here and here) and the Pangandamans have been revealed, and it seems Bambee was not telling the whole truth. It appears that it was the dela Paz family that breached golf etiquette by throwing golf balls at the Pangandamans, and that the fight was instigated by Mr. Delfin dela Paz unreasonably poking Mayor Nasser Pangandaman, Jr. with an umbrella. The mayor poked back, which resulted in a brawl between the two men, with Bino joining in the fight and breaking the mayor’s wrists (unverified) with his driver (that thing at the end of the stick that hits the golf ball), and Bambee scratching the face of the elder Pangandaman brother.

Still, even though the dela Paz family started and put up a big fight, it was noted that it was the dela Paz family, in the end, who sustained worse injuries. So the Pangandamans are not faultless, either. In the end, both families did the wrong thing, and no one was exactly innocent or blameless. And it is only right that Valley Golf banned both families from ever entering the club again.

So I apologize to my readers for writing a very biased and emotional post here, and for condemning the Pangandaman family and the Valley Golf Country Club before knowing all sides of the story.

This mayor in the picture, Mayor Nasser Pangandaman, Jr. of Masiu City, Lanao del Sur is a disgusting turd of a person, as many politicians in the Philippines are. So is his father Agrarian Reform Secretary Nasser Pangandaman Sr., who probably was the one who taught his son that cheating is okay, and that violence will stop people from telling others you cheated.


Well, they’re both very, very wrong.

A family of three (a 56-year old man named Delfin de la Paz, his son and his daughter) were golfing at the Valley Golf and Country Club in Antipolo a day after Christmas. The mayor (Mayor Nasser Pangandaman, Jr.) and his posse breaches etiquette and passes their flight without a word, and so Mr. de la Paz comes up to them to ask them why they did not even stop to ask their permission.

In response to that, the mayor punches and boxes the old man until he bleeds. Even when the father can no longer get up, the mayor’s men (five bodyguards, FIVE!!!) tackle him and beat him to a pulp. When the 14-year old son tries to help by asking for mercy, they turn on him too and beat him up. They even pulled their handguns out and threatened to kill them when all the family had to defend themselves was a measly umbrella.

What’s worse than a group of armed politicians beating up an unarmed old man? The management and staff of a golf club who were there THE WHOLE TIME and did NOTHING! Nothing but watch and then afterwards tell the beaten up family to LEAVE!!! The old man was bleeding and half-unconscious but no doctor was called, no assistance offered. Only an order to leave the premises. As if the old man and his children were the perpetrators of the crime and not the victims.

To everyone, don’t ever got the Valley Golf and Country Club in Antipolo!!! Tell all your friends! Let this company rot in social  and economic hell!

The story has been picked up by the media and is spreading like wildfire. Good, let these people get the shame and ridicule they deserve. And a long sentence in prison too, hopefully.

Read the daughter’s blog here.

From GMA News:

The Antipolo police said Saturday that they would file physical injuries charges against the son of Agrarian Reform Secretary Nasser Pangandaman Sr. and five bodyguards for beating up two golfers at the Valley Golf and Country Club in Antipolo on Friday afternoon.

Facing charges are DAR chief’s son Nasser Pangandaman Jr., who is mayor of Masiu in Lanao del Sur, and his five bodyguards, a report on DZBB said. They were accused by Delfin de la Paz, 56. De la Paz claimed that Pangandaman and his bodyguard mauled him and his 14-year-old son after a brief spat inside the golf course.

Meanwhile, GMANews.TV learned that Pangandaman Jr has filed a counter-complaint against his accuser at the police station in Mayamot, Antipolo.

The lead investigator of the case said they found out that only Pangandaman Jr. and the five bodyguards took part in the mauling of De la Paz. Earlier reports said the elder Pangandaman also hurt De la Paz.

Radio dzRH earlier reported that the De la Paz family filed on Friday night a complaint with the Antipolo police for physical injuries and violation of the law protecting women and minors.

From ABS-CBN:

Agrarian Reform Secretary Nasser Pangandaman Sr. and his son allegedly mauled two golf players, including a 14-year-old boy, inside a golf club in Antipolo City, Rizal province, on Friday afternoon.

Delfin dela Paz and his 14-year-old son, Bino, went to the Antipolo City police station and filed complaints of serious physical injuries and violation of Republic Act 9262 or the Anti-Violence Against Women and Their Children, against Pangandaman and his son, Mayor Nasser Pangandaman Jr. of Masiu, Lanao del Sur.

Dela Paz told Antipolo City police investigators that he and his son were already on hole No. 6 of the Valley Golf and Country Club in Antipolo City, when the younger Pangandaman tried to overtake them, which they said was against golf etiquette.

The victim said he got mad and tried to complain, but he was suddenly mauled by the mayor and his bodyguards. He added that his son tried to pacify the mayor, but, he too, was mauled by the group.

After the incident, dela Paz said he went to the country club’s front desk to complain, but he was followed and mauled again by the mayor and his bodyguards. Dela Paz said Secretary Pangandaman was one of the men who allegedly mauled him and his son at the country club’s front desk. While being mauled, dela Paz said he saw the younger Pangandaman pull out a gun, which alarmed other people at the golf club.

After the incident dela Paz’s daughter Bambee wrote about the incident in her blog site, where she also said the staff and management of the golf club did not help them after the incident.

“None of the security guards even tried to stop the fight. Right in the clubhouse…. The general manager of Valley Golf would not give us the names of the men who made my brother’s ear bleed. It took him an hour. Maybe even more than that. He seemed to not want to help us,” she wrote in her blog.

The management of the golf club, meanwhile, has not yet issued any statement as of posting time.Pangandaman was recently appointed to the government’s peace panel with the Moro Islamic Liberation Front (MILF).

From Abante Tonite:

Sugatan ang isang mag-amang manlalaro ng golf makaraang pagtulu­ngan umanong gulpihin ng anak at bodyguard ni Department of Agrarian Reform (DAR) Secretary Nasser Pangandaman sa loob ng Valley Golf and Country Club sa Antipolo City, Rizal kahapon ng hapon.

Habang sinusulat ang balitang ito ay ginagamot naman sa Manila East Medical Center ang mag-amang sina Delfin dela Paz, 56, negos­yante at Bino Lorenzo, 14, isang junior golfer ng Phi­lippine Team at nakatira sa Magnolia Town and Country Executive Village, Bgy. Mayamot, Antipolo, Rizal, sanhi ng mga tinamong sugat sa mukha, tenga at katawan.

Sinabi umano ng ibang naglalaro ng golf kung sino ang nambugbog sa mag-ama at nalaman din nila ito sa pamamagitan ng logbook ng golf club na si Angel Pangandaman at ang mga bodyguard na sina Payzar Abdulaa, Mohammad Hussie, Abdan Pacasuma, Rene Magaque at Arnel Astacio.

Nandoon umano sa golf club si Sec. Pangandaman nang mangyari ang insidente at nakatingin lamang ito habang nagka­kagulo.

Base sa report nina PO1 Anna Francisco at Anjerico Magallanes ng Antipolo Police Station-Cri­minal Investigation Division, dakong ala-1:30 ng hapon nang maganap ang insidente sa Hole No. 5 ng South Course Valley Golf and Country Club na matatagpuan sa Don Celso S. Tuazon Avenue, Antipolo City.

Base naman sa salaysay ni Marie Dhel dela Paz, 18, kasalukuyan silang naglalaro ng golf sa Hole No. 5 ng kanyang ama at kapatid na si Bino Lorenzo nang dumating ang grupo ni Sec. Pangandaman kasama ang anak nitong si Angel at ang limang bodyguard.

Bigla na lamang umano sila nilampasan ng lugar ng grupo sa halip na sila ang maunang maglaro sa naturang butas. Dahil dito, sinita umano ni G. Dela Paz ang batang Pangandaman at sinabihan na hindi sila dapat manguna sa lugar hanggang sa nagtalo ang dalawa.

Sa kalagitnaan ng pagtatalo ay agad umanong lumapit ang matandang Pa­ngandaman kasama ang limang bodyguard. Hanggang sa pinagbuhatan umano ng kamay ni Angel si G. Dela Paz at dahil sa matanda na ito ay agad na bumulagta sa lupa. Nakabulagta na umano si G. Dela Paz ay pinagtulungan pang gulpihin ng limang bodyguard ng mag-amang Pangandaman.

Tinangka umanong awatin ng magkapatid na Dela Paz ang mga gumugulpi sa kanilang ama ngunit si Bino Lorenzo naman ang ginulpi ni Angel.

Matapos ang ginawang panggugulpi sa mag-ama ay nagbitaw pa umano ng salita ang batang Pangandaman sa matandang Dela Paz na “Baka hindi ninyo kami nakikilala ang yabang-yabang ninyo at mag-ingat kayo”.

Mabilis na umalis umano ang grupo sakay ng tatlong sasakyan, isang kulay puting Toyota Camry na may plakang AAM 88, kulay puting Expedition (ZHL 654) at kulay green na Prado (UAN 957).

Nabatid naman sa pamunuan ng naturang golf club na ang mag-amang Pangandaman ay miyembro nila at ang mga ito lamang ang kasunod ng mga biktima na naka-logbook sa nasabing entrance.

Samantala, nakatakda naman umanong imbita­han ng mga awtoridad ang mag-amang Pangandaman at ang limang bodyguard ng mga ito upang kunan ng pahayag hinggil sa nasabing insidente.

Sasampahan umano ng kasong serious physical injuries at paglabag sa Anti-Child Abuse Law sa Antipolo Prosecutor’s Office ang mga suspek.