QUEZON CITY, (PIA) – With the government granting Manila Water and Maynilad a 25-year franchise earlier this year, customers of respective water concessionaires shall expect a price reduction on their monthly bills.

“The water service distribution current charges shall no longer be subject to 12% Value Added Tax (VAT),” the Metropolitan Waterworks and Sewerage System (MWSS) Chief Regulator Patrick Lester Ty said on a virtual press briefing in March 3.

Instead, this will be subject to Other Percentage Tax (OPT) which is 2% National Franchise Tax (NFT), and Local Franchise Tax (LFT) which is implemented by respective local government units (LGUs) within the concession area.

To ensure that LGUs will not exploit the LFT, the MWSS assured that the Local Government Code will provide a cap that will govern and they cannot go beyond what is written in the law.

In this new adjustment, the MWSS explained that the OPT and LFT shall be reflected as ‘Government Tax’ in the customers’ Statement of Account (SOA) beginning March 21, 2022, the effectivity date of the legislative franchise of Manila Water and Maynilad.

Customers of Maynilad consuming 30 cubic meters can expect a rollback P81.75 to P89.10 in their monthly bills while customers consuming 20 cubic meters a month can expect a price decrease of P40.04 to P43.4.

Manila Water customers consuming 30 cubic meters can expect a price reduction of P55.62 to P57.59, those consuming 20 cubic meters shall see a P27.32 to P28.29 rollback, while those consuming 10 cubic meter shall have a decrease of P7.09 to P7.34.

The reason for the reduction of VAT was due the passage of RA 11600 and 11601 which granted Manila Water and Maynilad to establish waterworks system and sewerage and sanitation services.

 “The MWSS remains committed to ensuring the availability, accessibility, and affordability of water supply in the West and West Concession Areas,” MWSS Chief said. (SBB/PIA-IDPD)