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account_balanceMetro News account_circleJake Cruz chat_bubble_outline0 Comments

Customers of the Maynilad Water Services Inc. in the business areas of Muntinlupa, Las Piñas, Malabon, Valenzuela and Quezon City will get rebates in their water bill after the company implemented tax rates that are not in accordance with those approved by the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO), according to report by Manila Bulletin.

According to MWSS-RO Chief Regulator Patrick Lester Ty, “It may be recalled that in March 2022, the MWSS Regulatory Office (RO) recommended to the MWSS BOT the approval of the petition of Maynilad to impose a Government Tax on customers’ water bills in lieu of the twelve percent (12%) Value-Added Tax (VAT), as a consequence of the grant of a legislative franchise to Maynilad.”

“Since then, the Government Tax consisting of a two percent (2%) National Franchise Tax (NFT) and the actual rate of Local Franchise Tax (LFT) implemented by the local government unit, has been reflected in the Statements of Account (SOA) of Maynilad customers,” he said.


But he said that “upon monitoring and evaluation of the rates being implemented by Maynilad in its Service Areas, it has come to the attention of the MWSS RO that Maynilad has been charging customers in the aforementioned Business Areas the actual LFT rates of the relevant local government units instead of the rates approved by the MWSS BOT.”

“The MWSS RO recognizes that Maynilad implemented these rates in good faith, as the rates that it previously submitted to and approved by the MWSS BOT were outdated. Nevertheless, the Concessionaire implemented such rates without prior recommendation by the MWSS RO and subsequent approval of the MWSS BOT, which are part of the procedural requirements as provided under relevant laws,” said Ty.

The MWSS-RO directed Maynilad to “revert the rates of the Government Tax charges in accordance with the rates approved by the MWSS BOT, and rebate to the customers in the subsequent customer bills all taxes collected in excess of the LFT rates approved by the MWSS BOT.”

Ty said the rebates “will be implemented only in the March to June 2022 water bills of the relevant Maynilad customers, as the MWSS BOT issued on 02 June 2022 a Resolution recommending that the actual LFT rates imposed by the relevant local governments be adopted for computing Government Tax charges moving forward.”

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