water faucet water supply
MANILA, Philippines — Senator Grace Poe on Friday said that the removal of the 12-percent value added tax (VAT) in the water bills of Maynilad and Manila Water should not lead to “any deterioration” in the concessionaires’ service.
“The reduction in water bills must not lead to any deterioration of service,” Poe, head of the Senate public services committee, said in a statement.
“A stable supply of clean water should not be a luxury but a right of everyone,” she added.
Poe nevertheless welcomed the removal of VAT in the water bills, saying she hopes that it will be felt by the public without delay.
“The amount that will be spared can go directly to their food, household needs and debt payments,” the senator noted.
Poe also urged the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office to continue to ensure that water distributors will abide by the terms of their concession agreements in ensuring a steady water supply during the dry months.
She reiterated that the government must prepare for a likely shortage amid the dropping water level in dams ahead of the dry season.
“We expect that water cutoffs will be the exception, not part of the new normal,” Poe said.
On Thursday, the MWSS announced that Manila Water and Maynilad customers will be paying less with the removal of VAT in their water bills starting March 21.
According to MWSS Chief Regulator Patrick Lester Ty, percentage tax and the local franchise tax shall instead be reflected as government tax in the customer’s statement of account starting the said date.
Ty explained that the VAT will be removed in the water bills of the two concessionaires starting March 21 because it is the effective date of the legislative franchises of Manila Water and Maynilad.