Local water districts support Lacson bill

CEBU, Philippines - Representatives of local water districts in the different regions of the country showed their support for the bill filed by Sen. Panfilo Lacson which exempts them from paying taxes.

Lacson filed Senate Bill 3152 which aims to exempt the local water districts from paying such taxes and instead use the money to improve their services.

Delfin Hilario, president of the Philippine Association of Water Districts Inc. said that the bill will surely help the water districts especially in maintaining affordable water rates within the paying capacity of their customers.

The water districts were created in order to acquire, install, improve, maintain and operate water supply and distribution systems for domestic, industrial, municipal and agricultural uses for residents and lands within the boundaries of such districts.

According to Hilario, the exemption in paying taxes will also help in expanding their coverage of land that could be given service and would also mean more job opportunities as they would need more manpower.

Hilario said that if approved, the industry will also benefit from it since there would be improved water supply facilities that would encourage more industrial activities, ensure sustainable supply to businesses and other commercial establishments and even attract more investors.

According to Hilario, the taxing of water districts will have a lot of effects like the slow growth of water districts and the increase of water rates and bills.

It would also result to massive personnel retrenchment due to the cutting down of major and operations and stopping of local water districts from expanding service coverage.

Lacson’s bill seeks to amend Section 27 of the National Internal Revenue Code and make it consistent with the Presidential Decree No. 198, which made the local water districts.

PD 198 exempted local water districts in the payment of income taxes and also from the payment of all national government, local government and municipal taxes and fees, and all duties or imposts on imported machinery, equipment and materials required for the operations.

However, Lacson said that in the past years, several laws were enacted either granting or withdrawing the tax exemption privileges of local water districts.

As of now, there are 478 water districts all over the country, including small water districts up to the very big ones.  

The Metropolitan Cebu Water District also asked Lacson on the possibility of the government subsidizing the cost for the building of a dam here in Cebu.

Lacson asked them to submit in print details for the financial costs. — AJ de la Torre/BRP (THE FREEMAN)