Meralco’s Subscribers are the one Paying the Government Taxes

Meralco is now 113 years in service. It serves almost approximately 5.8 million customers or subscribers. Its service covering 36 cities and 75 municipalities, including Metro Manila. Meralco is the largest distributor of electrical power. It is an acronym for Manila Electric Railroad and Light Company. In spite of so many subscribers of Meralco – many of its customers believed that Meralco does not pay the annual government taxes, instead it is shouldered by its subscribers.

Government taxes paid by Meralco's subscribers
Government taxes paid by Meralco’s subscribers

Out of 5.8 million Meralco subscribers, there are about 80,000 subscribers who are from different industry sectors, including restaurants, boutiques hotels, farms, manufacturing plants, commercial buildings, etc., who are paying with the rest of Meralco subscribers the monthly government taxes. This means that the past govenments were blind or if not, they were lenient for this illegal practice of Meralco.

I still remember, there was a Supreme Court ruling in 2002. The ruling said “The practice of passing income tax to consumers is illegal. The SC in its ruling explained that the regulatory correctly ruled that income tax should not be included in the computation of operating expenses of a public utility.” But what Meralco has done until now, they still adapted that illegal practice.

If you are a Meralco subscriber, check out your Meralco monthly bill or examine the photo I included with this article and you will see that it is you who pay the government taxes not the Company Meralco. The company is doing business without paying the government taxes. Meralco is cheating its million subscribers as well as cheating the Philippine government for a long time ago.

Would it be at this time, the govenment of President Duterte would have to take time to examine the cheating practice of Meralco Company? As nobody can deny it that every time a consumer receives his Meralco monthly bill, the computations of government taxes are included on the bill to be paid out by the subscriber, which is I think it is the obligation of Meralco to pay them!

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