Vol. XXI, No. 168-A [ Business World Online ]
Saturday, March 29, 2008 | MANILA, PHILIPPINES
Manila Water Company, Inc. will enjoy a three-year income tax holiday after the Bureau of Investments (BOI) approved its application as an expanding operator of the Antipolo water supply and distribution project.
In a disclosure, the company said it would be entitled to tax breaks from sales and revenues generated from the project from Jan. 1, 2008 to Dec. 31, 2010.
The first and second phases of the P2-billion Antipolo project involves the construction of three pumping stations, two reservoirs and transmission lines to deliver surface water to elevated lands of Antipolo City.
The project also replaces ground water as a water source for the area. It will benefit residents of Antipolo City and the adjacent towns of Cainta, Taytay and Teresa.
The government mandates Manila Water to use the tax incentives to increase capital investments, improve the water system in the are, as well as for corporate social responsibility.
In a phone interview, Manila Water Investor Relations Manager Dave Valeriano said they have yet to verify the amount of the tax break, but it could reach millions of pesos.
Savings from the tax incentive will be used to partly fund the third phase of the project, which involves construction of an additional infrastructure network.
An ITH will not translate to cheaper rates for consumers in that area. "In a way, it is beneficial to the company but whatever we save, we give back through capital investments and improved service to the people," Mr. Valeriano said. — Ava Kashima K. Austria
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