San Fernando removes VAT on water bills, refunds issued

CITY OF SAN FERNANDO, Pampanga — Starting March, residents will no longer pay the 12 percent Value-Added Tax (VAT) on their water bills, with full refunds for VAT collected from 17 November 2025 to February 2026, the city announced.

Mayor Vilma Caluag, in her public address on 14 February 2026, emphasized that the measure stems from the government’s commitment to act on citizens’ daily struggles.

“We feel your hardship each day — this is why the legislative and executive offices worked with the San Fernando Water District to remove the tax,” she said.

She added that the initiative aims to cut household costs and ease living burdens.

The announcement drew mixed feedback from residents. While many expressed gratitude, others raised concerns.

Emily Lorenzo said water, as a basic necessity, should have long been VAT-exempt and cited supply issues affecting nearby San Jose, where service is intermittent at times.

Hasegawa Isabelita of Dolores Homesite echoed the concern, saying, “…dito sa amin, pumapatak lang po yung tubig namin. Sana maayos mo po aming mahal na mayora.” (“Here in our area, the water only trickles. I hope you can fix it, our dear mayor.”)

MayAnn Bumanglag also called for repairs to roads in Sta. Monica Village, citing eroded gravel sections and potholes that make daily travel difficult.

Mayor Caluag assured residents that the city is addressing the raised concerns alongside the VAT removal initiative, noting that areas with low water pressure and intermittent supply are being assessed for system upgrades.