Senator Ralph Recto has filed a resolution asking the Senate Committee on Public Services to look into how water concessionaires Maynilad Water and Manila Water were allowed to collect money meant to pay their taxes from consumers.
The resolution, filed on Monday, directs the “Senate Committee on Public Services to conduct an inquiry, in aid of legislation, on the pass-on charges of Maynilad Water and Manila Water, which include their income tax payments, with the end in view of revisiting the regulatory powers of the Metropolitan Waterworks And Sewerage System (MWSS), and ensuring that consumer rights and welfare are protected.”
According to the Water for the People Network, the concessionaires have been passing on their taxes to consumers at P3.1 billion a year since 2008. That’s around P15.5 billion.
The corporate income taxes are included in the concessionaires’ operations expenses and Recto said in the resolution that the companies are asking to pass on tax charges consumers from 2013 to 2037, when their concession agreements expire. Recto said that means consumers will have to shoulder P64.1 billion in taxes for Manila Water and P68.7 billion for Maynilad.
The concessionaires are also asking for increases in water rates.
Senator Ramon Revilla Jr. heads the public services committee but the Senate will likely revamp its leadership and chairmanships when it resumes session on July 22.
