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Puro kita, walang bayad! Win Gatchalian slams maynilad, Manila Water for passing on corporate tax to customers

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All businessmen — big or small — must pay corporate tax.

Senator Win Gatchalian stressed this as he deplored the apparent attempt of Manila Water and Maynilad to pass their corporate taxes to their consumers through the concessionaire contract they entered into with the then Ramos and Arroyo administrations.

The Permanent Court of Arbitration in Singapore has ordered the government to pay Maynilad about P3.6 billion in damages for the company’s losses over the refusal to implement tariff adjustment for 2013 to 2017.

Recently, the court also asked the government to pay P7.4 billion to the Ayala-Manila Water as compensation for losses and damages from delayed water rate increases since 2015.

President Duterte does not want his administration to honor the ruling and even threatened to file economic sabotage charges against the owners of Maynilad and Manila Water.

“Ang puno’t dulo nito ay, kung matatandaan natin, mga four or five years ago, itong mag concessionaires ay ipinapasa ang corporate income tax sa mga consumers,” Gatchalian said in a radio interview.

“Para sa akin, unfair po ito dahil nga kahit mga maliliit na negosyo gaya ng maliit na salon o tindahan, kung ang sales mo ay mataas, magbabayad ka ng income tax,” he said.

Gatchalian added, “Ang maliliit na negosyo nga ay nagbabayad ng income tax, yan ay obligasyon mo bilang isang negosyante. Ngunit dito sa concession agreements ay ipinapasa ho ito sa consumers so ang concessionaires.”

“Kukuha sila sa atin ng pera sa pamamagitan ng pagbebenta ng tubig at ginagamit ‘yun sa pagbayad ng obligasyon, ang corporate income tax which is unfair naman dahil halos wala ka nang babayaran sa gobyerno,” he said.

Gatchalian raised the need to renegotiate the concessionaire agreement to make it fair to all.

“Itong dalawang concessionaires ay binigyan natin ng pribilehiyo para mag-supply sa atin. Pero may obligasyon rin sila na magbayad po ng corporate income tax,” he said.

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