Manila Water Drops a Second Day on Regulatory Tax Review ReportIan Sayson
Manila Water Co., which supplies half of the Philippine capital, fell for a second day after a regulator said the practice of water utilities passing taxes onto consumers is under review.
Metropolitan Waterworks considers it a “grossly unjust” practice that water companies pass the costs of a tax onto customers and that this is under review, ABS-CBN News cited acting chief regulator Emmanuel Caparas as saying.
The stock dropped 2 percent to 32.40 pesos today. The Ayala Corp.-led company, whose shares have risen 31 percent over the past year, provides water services to 6.2 million residents in Manila and the Quezon City area.
Manila Water meanwhile plans to spend 346 million pesos ($8 million) for a 3.2-kilometer (2-mile) sewer network to benefit a half-million residents in San Mateo, Rizal and Marikina City that’s set to be finished within a year.