Maynilad to Rebate ₱2.1 Million to Customers due to Excess Tax Collection

The Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) has urged Maynilad Water Services Inc. to rebate its customers in certain localities. The covered areas consist of Muntinlupa-Las Piñas, Malabon-Valenzuela, and Quezon City. Consumers within these cities “will receive minor corrections in their water bills in the form of rebates, as a result of Maynilad’s implementation of tax rates that are not in accordance with the rates approved by the MWSS Board of Trustees (BOT).”

The MWSS-RO also released an announcement earlier in March removing the 12% value-added tax (VAX) for the water services charges of Maynilad and Manila Water. Instead, the water services of both water utilities will be subject to a 2% other percentage tax or national franchise tax (NFT) along with the actual rate of local franchise tax (LFT) as implemented by respective local government units (LGUs). This came into effect on March 21, 2022. The taxes will be reflected in the customers’ water bills as “government tax.”

“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,” explained the MWSS-RO following a close evaluation of Maynilad’s rates. “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implemented these rates in good faith, as the rates that it previously submitted to and approved by the MWSS BOT were outdated.”

Maynilad, likewise, affirmed that its LFT rates were initially approved by the MWSS BOT. However, these were based on outdated rates. “[H]ence, Maynilad applied the actual local franchise tax rates in computing the Government Taxes to be included in the water bills. The MWSS Board has since issued a Resolution affirming the use of actual local franchise tax rates in the computation,” responded the water utility company.

The MWSS-RO expects Maynilad to rebate all excess taxes collected through the prior LFT rates. Rebates will be implemented in the March to June 2022 water bills of concerned customers. “Around ₱2.1 million will be returned in the form of rebates to the relevant customers. Note that all local franchise taxes collected will be remitted to the relevant LGUs,” added Maynilad.

Source: GMA News