BACOLOD City – The Sangguniang Panlungsod (SP) passed a resolution opposing the imposition by PrimeWater Infrastructure Inc. (Prime Water) of a 12-percent value added tax (VAT) on water.
The Bacolod City Water District (Baciwa) has a 25-year joint venture agreement (JVA) with PrimeWater.
The Bacolod Consumers Watch, Inc., Amlig Tubig Coalition and the Social Action Center of the Diocese of Bacolod earlier expressed opposition to the “privatization” of Baciwa’s water services via the JVA.
They also projected a “75 percent” likelihood increase in water rate and VAT.
Councilor Wilson Gamboa, author of the resolution, warned that the 12 percent VAT – based on the Revenue Code of 1997 as amended by Republic Act 9937 or Reformed Value Added Tax Law of 2005 – would be passed on to consumers.
He questioned the VAT, citing Republic Act 7109 and Presidential Decree 198 that grant tax relief to local water districts.
The 12-percent VAT will be imposed starting Feb. 1./PN
