Customers of Maynilad and Manila Water will experience lower water rates starting March 21 due to a new taxation method, according to the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO).
Patrick Ty, MWSS-RO chief regulator, said as the concessionaires were granted their own franchises last year, their customers’ water bills are now no longer subject to the 12 percent value-added tax.
Instead, they will be subject to the other percentage tax equivalent to a 2 percent national franchise tax and the actual rate of local franchise tax of respective local government units.
For Maynilad customers consuming an average of 10 cubic meters (cu.m.) per month, the adjustment will translate to a decrease of between P10.68 and P11.64 in their monthly water bill. Those consuming 20 cu. m. per month will see a downward adjustment of P40.04 to P43.64 while those consuming 30 cu.m. per month will have around P81.75 to P89.10 less charge in their monthly bill.
For Manila Water customers consuming an average of less than 10 cu. m., the discount will be equivalent to a decline of P7.09 to P7.34 while those using 10 cu. m. monthly will pay less of around P12.39 to P12.82.
As for Manila Water customers with 20 cu. m. use per month, a downward adjustment of P27.32 to P28.29 will take effect while those consuming 30 cu.m. per month will have around P55.62 to P57.59 decrease in their monthly bill.
Ty said the adjustments will be reflected as government tax in the customers’ statement of account.
