VAT removed from Maynilad, Manila Water bills starting March 31, 2022 —MWSS

Customers of Manila Water Company Inc. and Maynilad Water Services Inc. shall expect lower bills as the value added tax (VAT) will be removed from the water companies’ billing system, the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) said Thursday.

At a virtual press briefing, MWSS-RO chief regulator Patrick Ty said that following the passage of Maynilad’s and Manila Water’s respective congressional franchises, the water services charges of the water distribution utilities shall no longer be subject to 12% VAT beginning March 21, 2022.

“The changes will result in a reduction in Maynilad and Manila Water customers’ monthly water bills,” Ty said.

Instead of VAT, however, water services of the water firms will be subject to 2% other percentage tax or national franchise tax (NFT) and the actual rate of local franchise tax (LFT) implemented by local government units (LGUs).

The NFT and LFT shall be reflected as “government tax” in the customers’ water bills starting March 21.

Despite this, Ty said the net effect of the removal of VAT is a reduction of P10.68 to P11.64 for Maynilad customers consuming 10 cubic meters per month.

For Maynilad customers consuming 20 cubic meters a month, the effect will be a rollback of P40.04 to P43.4 while those consuming 30 cubic meters shall see a decrease of P81.75 to P89.10 in their bills.

Manila Water customers consuming 10 cubic meters shall expect a reduction of P7.09 to P7.34, those consuming 20 cubic meters shall see a decrease of P27.32 to P28.29, while for those consuming 30 cubic meters the effect will be P55.62 to P57.59 rollback in their bills.

Ty said the MWSS-RO “remains committed to ensuring the availability, accessibility, and affordability of water supply in the East and West Concessionaire areas.”

Manila Water provides water and wastewater services to residents of the Cities of Makati, Mandaluyong, Pasig, San Juan, Taguig, and Marikina; and Municipality of Pateros. It is also in charge of the southeastern parts of Quezon City, and Sta. Ana and San Andres in the City of Manila.

In the province of Rizal, it services the city of Antipolo, and the municipalities of San Mateo, Rodriguez, Cainta, Taytay, Teresa, Angono, Baras, Binangonan, Jalajala, Cardona, Morong, Pilillia, and Tanay.

Maynilad, meanwhile, provides water and wastewater services to residents in most parts of the City of Manila; northern and western parts of Quezon City; western parts of Makati City; and the Cities of Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela, Muntinlupa, Navotas, and Malabon in Metro Manila.

It also serves the municipalities of Kawit, Noveleta, and Rosario, as well as the Cities of Bacoor, Cavite, and Imus in the Province of Cavite.  —KBK, GMA News