Water concessionaires in the City of San Fernando will no longer pay the 12 percent Value Added Tax (VAT) on their water bills.
The VAT removal will take effect in the March 2026 billing cycle.
The move will result in a 12-percent reduction in water charges.
Refunds will also be issued for VAT collected beginning November 2025, with details on the refund process to be announced.
Mayor Vilma Caluag announced this development on February 14, 2026, saying the measure aims to provide financial relief to consumers.
Prime Water Infrastructure Corporation, which previously operated the City of San Fernando Water District under a joint venture, was suspended by the city government in November 2025.
This, after Caluag issued an executive order suspending the business permit of PrimeWater in the city due to performance issues and service complaints.
With the suspension of the firm's permit, the mayor said the operations of the water utility returned to the City of San Fernando Water District.