Customers of Manila Water Company Inc. and Maynilad Water Services Inc. shall expect lower bills as the value added tax (VAT) will be removed from the water companies' billing system, the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) said Thursday. At a virtual press briefing, MWSS-RO chief regulator Patrick Ty said that following the passage of Maynilad's and Manila Water's respective congressional franchises, the water services charges of the water distribution utilities shall no longer be subject to 12% VAT beginning March 21, 2022. "The changes will result in a reduction in Maynilad and Manila Water customers' monthly water bills," Ty said. Instead of VAT, however, water services of the water firms will be subject to 2% other percentage tax or national franchise tax (NFT) and the actual rate of local franchise tax (LFT) implemented by local government units (LGUs).