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Poe: Removal of 12% VAT on water bills should not lead to poor services
Poe: Removal of 12% VAT on water bills should not lead to poor services
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Poe: Removal of 12% VAT on water bills should not lead to poor services
by John Dexter Tilo04 March 2022
Photo courtesy of Senator Grace Poe's Facebook page.

Senator Grace Poe on Friday lauded the removal of the 12% value-added tax (VAT) on water bills but pointed out that this should not lead to interruptions of quality services to consumers.

Poe said the removal of 12% VAT in the water bills of Maynilad Water Services Inc. and Manila Water Co. Inc. is a welcome relief for their customers.

"The amount that will be spared can go directly to their food, household needs, and debt payments," the senator said in a statement.

Despite this, Poe stressed that the water concessionaires should still ensure uninterrupted services.

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"The reduction in water bills must not lead to any deterioration of service," the senator, who is also the chairperson of the Senate Public Services Committee, stressed.

"A stable supply of clean water should not be a luxury but a right of everyone," she added.

The Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS) on Thursday announced the removal of 12% VAT in the water bill starting this month. It came with the passage of Republic Acts No. 1600 and 11601, which grants Maynilad and Manila Water franchises to establish, operate, and maintain waterworks systems and sewerage and sanitation services in the concession areas.

The effect of the VAT removal is expected to be felt starting March 21, according to the MWSS.

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Meanwhile, Poe also urged the organization to ensure that the water distributors are compliant with the terms of their concession agreements, particularly in ensuring a stable water supply in the coming dry season.

"We expect that water cutoffs will be the exception, not part of the new normal," the senator said.

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