Amlig Tubig members called for the removal of the 12 percent Value Added Tax (VAT) on water services at a rally in front of the Bacolod City Government Center on Wednesday, January 4.
They also called for the reinstatement of “illegally dismissed” Bacolod City Water District employees.
Noli Rosales, BAYAN Negros spokesperson, said they are calling on Bacolod Mayor Alfredo Abelardo “Albee” Benitez to see to the removal of that 12 percent VAT on water services.
“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 percent VAT in our water utility bills under Primewater is an extra burden to consumers in Negros that must be eradicated by the LGU immediately,” he said.
The imposition of the VAT is a direct result of the joint-venture agreement (JVA) between Bacolod City Water District (BACIWA) and the Villar-owned Primewater. The collection of the VAT from consumers started in February of 2022 and will continue for 25 years as stipulated in their contracts, Rosales said.
“It is unjustifiable that families must shed off so much money for water, which is an essential and basic human right. Even the Sangguinang Panglungod, in a resolution, considers 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 added.
BAYAN Negros reiterates its firm opposition to the joint-venture, which has done nothing to improve the water services in the City, Rosales said.
“In fact, numerous consumers report worsening services and it has only led to steep prices which are being passed on to the consumers. Even the Commission on Audit has found anomalies and claimed the JVA disadvantageous to consumers,” he said.
BAYAN Negros also calls on the LGU, under Benitez, to stand firm on their campaign slogan that they will bring about change, Rosales said.
“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. Consumer groups have already conducted dialogs with him last August and September, and yet no concrete measures have been made by his leadership,” he added.
Bayan Negros also dares Benitez to suspend the BACIWA Board of Directors who entered into the JVA without holding any public hearing, “if he is truly sincere about serving his constituents,” Rosales said.
Baciwa and Primewater are only one example of how privatization does not benefit the people, but instead only serves oligarchs, such as the Villars, who remain at the top spot of the wealthiest in the country, he said.
”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,” Rosales said.*