While the removal of the 12-percent value-added tax (VAT) on consumers’ water bills is a welcome relief, Sen. Grace Poe exhorted the country’s two major water concessionaires to ensure uninterrupted, quality water service.
“The reduction in water bills must not lead to any deterioration of service,” Poe stressed.
“A stable supply of clean water should not be a luxury but a right of everyone,” she added.
The chairperson of the Senate public services committee said she hopes that the relief will be felt by the people without delay.
“The amount that will be spared can go directly to their food, household needs and debt payments,” Poe said.
The Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office said the removal of the 12-percent VAT on water and waste water services was mandated by Republic Acts No. 11600 and 11601 that granted Maynilad Water Services Inc. and Manila Water Co. Inc. their respective franchises to establish, operate and maintain waterworks system and sewerage and sanitation services in their concession areas. It was Poe who spearheaded the passage of the said laws in the Senate last year to ensure uninterrupted water services to consumers.
The state regulatory agency added that consumers can expect the VAT removal to reflect in the water bills starting March 21, 2022.
Poe further urged the MWSS to continue to ensure that water distributors abide by the terms of their respective concession agreements in ensuring a steady supply of water in the dry months.
She said the government must prepare for a likely shortage amid the dipping water levels in source dams ahead of the dry season.
“We expect that water cutoffs will be the exception, not part of the new normal,” Poe reiterated.
