SC asked to require Maynilad, Manila Water to refund income tax passed on, collected from consumers

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SC asked to require Maynilad, Manila Water to refund income tax passed on, collected from consumers
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The SC was asked to partially reconsider its 2021 decision that barred water consumers from demanding a refund for the income tax passed on and collected from them by Maynilad Water Services, Inc. and Manila Water Company, Inc. | ManilaBulletin

The ruling that bars consumers from seeking refund was contained in the SC’s decision that Maynilad Water and Manila Water are public utilities subject to the 12 percent return on investment and, thus, cannot recover from their consumers the corporate income taxes as operating expenses.

It stressed that the two water utilities should be compelled to refund the “illegally” passed on corporate income taxes to their respective water consumers. In GR Nos. 207444, 208207, 210147, 213227, and 219362, the SC affirmed the Concession Agreements entered into by MWSS with Manila Water and Maynilad, including the provision on arbitration clause.

“We are merely moving for partial reconsideration of the Court’s decision prohibiting the consumers from demanding a refund for our payment of their income tax for many years,” he said.

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