
Ambulant vendors sell water containers for a hundred pesos each to residents affected by water interruptions in Intramuros, Manila on Monday. Maynilad will be installing a seven-foot-tall pipeline along Hermosa Street in Tondo, Manila to give way to a government flood control project. (MNS photo) MANILA (Mabuhay) — Bayan Muna party-list on Tuesday asked the Supreme Court to stop the government from paying Manila Water and Maynilad for the alleged losses the concessionaires incurred after they were disallowed from recovering their corporate income taxes by hiking their water rates. In a petition, Bayan Muna party-list Reps Neri Colmenares and Carlos Zarate insisted that corporate income taxes of the two concessionaires cannot be considered as expenditures and cannot be passed on directly or indirectly to water consumers. The lawmakers asked the tribunal to issue a temporary restraining order or a writ of preliminary injunction to prevent the water firms from recovering their income tax liabilities from national coffers. The group cited the so-called Meralco ruling in November 2002 that declared that income tax payments cannot be considered as expenses incurred by public utilities when generating profit. Prior to the SC ruling, Manila Water and Maynilad were initially allowed to include corporate income tax as expenditures and pass it on to consumers by way of tariff during the first rate rebasing exercise in 2002. Despite the SC ruling, the water concessionaires argued they are not public utilities but merely agents and contractors of MWSS. The MWSS eventually sided with the concessionaires and Read More …







