The Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) said customers of Maynilad Water Services, Inc. in Muntinlupa, Las Piñas, Malabon, Valenzuela and Quezon City will receive minor corrections in their water bills in the form of rebates.
In a separate statement, Maynilad said it will comply with MWSS-RO’s orders, noting the average rebate to be given for each qualified customer will be at P1.63.
MWSS-RO said Maynilad charged tax rates not in accordance with those approved by the MWSS Board of Trustees (BOT).
It added the amount of rebate will be different for each customer and will cover March to June 2022 water bills for a total amount of over P2.1 million.
The MWSS-RO clarified Maynilad’s implementation of such rates were done in good faith as the rates that it previously submitted to and approved by the MWSS BOT were outdated.
However, the regulatory body still implemented such rates without its prior recommendation and subsequent approval of the MWSS BOT which are part of procedural requirements under the law.
Last March, the MWSS-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 12 percent value-added tax, as a consequence of the revamped legislative franchise of the company.
Since then, the government tax consisting of a 2 percent national franchise tax and the actual rate of local franchise tax (LFT) implemented by the local government unit has been reflected in the bill of Maynilad customers.
The MWSS-RO said that it monitored and evaluated that Maynilad is implementing the actual LFT rates of local government units in the affected areas instead of the rates approved by the MWSS BOT.
This prompted MWSS-RO to order Maynilad to revert the rates of the government tax charges in accordance with the rates approved by the MWSS BOT and to rebate all taxes collected in excess of the LFT rates.
Likewise, MWSS-RO issued a resolution earlier this month wherein the actual LFT rates imposed by relevant local governments will now be adopted for computing government tax charges moving forward. Jed Macapagal
