16 June 2022
PRESS RELEASE

MAYNILAD CUSTOMERS TO RECEIVE WATER BILL REBATES

Maynilad Water Services, Inc. customers in the Business Areas of Muntinlupa-Las Piñas, Malabon-Valenzuela, and Quezon City 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).

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.

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implemented these rates in good faith, as the rates that it previously submitted to and approved by the MWSS BOT were outdated.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.

In light of these premises, the MWSS RO has directed Maynilad to:

1) revert the rates of the Government Tax charges in accordance with the rates approved by the MWSS BOT, and

2) rebate to the customers in the subsequent customer bills all taxes collected in excess of the LFT rates approved by the MWSS BOT.

The above 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.

The MWSS RO remains steadfast in protecting, first and foremost, the interests and welfare of the consumers.

(sgd.)
PATRICK LESTER N. TY
Chief Regulator