PROGRESSIVE groups led by BAYAN Negros asked the help of Bacolod City Mayor Alfredo Benitez to remove the “burdensome” 12 percent value-added tax (VAT) in the water services.
The groups staged a rally in front of the Bacolod Government Center Wednesday, January 4, to demand the reinstatement of the 60 displaced workers and aired their strong opposition to the 12% VAT imposed by the Villar-owned PrimeWater Infrastructure Corp.
With families already reeling from the high costs of food, fuel, and other basic commodities due to a worsening Philippine economy amid the record-high inflation in the country, the 12% VAT in the water utility bills is an extra burden to consumers, Noli Rosales, BAYAN Negros spokesperson, said in a statement Wednesday.
The imposition of the VAT is a direct result of the joint-venture agreement (JVA) between Bacolod City Water District (BACIWA) and PrimeWater, he said, stressing that the VAT was collected from the consumers since February 2022 and will continue for 25 years as stipulated in their contracts.
“It is unjustifiable that families must shed off so much money for water, which is an essential and basic human right,” he said.
Even the Sangguinang Panglungod, in a resolution, considered BACIWA as a Government Owned and Controlled Corporation (GOCC), citing Presidential Decree 198, thus, the imposition of the VAT is an admission of BACIWA that it has indeed been privatized through the joint venture, he said.
BAYAN Negros also called on Benitez to stand firm on their campaign slogan that they will bring change to the city.
“We urge him to listen to his constituents as he has all the power to review and even stop the imposition of such burdensome VAT and the JVA itself,” he said.
Consumer groups have already conducted dialogs with the mayor last August and September, and yet no concrete measures have been made by his leadership, he added.
BAYAN Negros also asked Benitez to suspend the board of directors who entered into the JVA without holding any pubic hearing.
“We must remain firm to our opposition to the privatization of our everyday lives, from transportation, electricity and other basic services, at the hands of local capitalists or foreign companies. Water, and other basic services, must be at the hands of the people,” he said.
Earlier, the Commission on Audit questioned the legality of the JVA.
The 2020 COA audit report recommened that the management should seek clarifications and reconciliation to ascertain the legality of the joint venture operation between BACIWA and PrimeWater.*