The Manila Times

SC ruling won’t affect business – Manila Water

FRANCIS EARL CUETO

A SUPREME Court decision declaring Metro Manila’s water concessionaires as public utilities will not have a business impact, East Zone provider Manila Water Co. Inc said on Wednesday.

In a December 2021 ruling received by one of the plaintiffs last week, Manila Water and West Zone concessionaire Maynilad Water Services Inc. were subsequently barred from recovering corporate income taxes as an operational expense.

“The ruling of the Supreme Court en banc does not have a material effect on the business and operations of Manila Water Company, Inc,” Manila Water said in a disclosure to the Philippine Stock Exchange.

“The company has been granted a franchise as a public utility under Republic Act 11601,” it added.

“Pursuant to RA 11601, Manila Water no longer deducts its payment of corporate income taxes as an expense and shall continue to be liable for income taxes under the National Internal Revenue Code.”

The company said it had already received a copy of the Supreme Court decision, which it noted also declared its concession agreement with the Metropolitan Waterworks and Sewerage System as valid.

“Manila Water Company Inc. was also declared as a public utility subject to public service laws,

including the 12 percent limitation on rate of return and the prohibition on recovering their corporate income taxes as operating expenses pursuant to the Supreme Court’s ruling in Republic vs. Meralco (Manila Electric Co.),” it added.

Partylist legislators and causeoriented groups, among others, had claimed that the two firms should also refund consumers.

Manila Water’s share price fell by 0.73 percent or 14 centavos to P19 on Wednesday amid a 0.19-percent gain for the benchmark Philippine Stock Exchange index.

Business Times

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2023-05-25T07:00:00.0000000Z

2023-05-25T07:00:00.0000000Z

https://manilatimes.pressreader.com/article/281801403330713

The Manila Times