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The City of San Fernando will eliminate the 12% Value Added Tax on water bills, effective March 2026, leading to a corresponding reduction in water charges. Additionally, refunds will be issued for VAT collected since November 2025, with details to be provided later.

Mayor Vilma Caluag announced this initiative on February 14, 2026, to assist consumers financially. The city's water utility operations have reverted to the City of San Fernando Water District after suspending Prime Water Infrastructure Corporation's business permit in November 2025 due to service complaints and performance issues.