NWC Wants 51% More for Water. But It Owes $21 Billion in Taxes

NWC wants Jamaicans to pay 51% more for water—but why does it owe the Government JMD 21 billion in unpaid taxes?

The National Water Commission has applied for a 51% increase in water and sewerage tariffs.

And look at the timing. Jamaicans in several parishes have been living with water restrictions for weeks because of the drought.

So in the middle of water restrictions, when people are already frustrated about what’s coming out of their taps, you’re asking for such a big increase?

But at Parliament’s Public Accounts Committee this week, another number raised eyebrows: approximately JMD 21 billion in unpaid General Consumption Tax. That’s 132 million US dollars!

And this isn’t simply GCT added to your household water bill. NWC explained that it withholds tax when paying suppliers and is supposed to hand that money over to the Government.

Its chief financial officer acknowledged that the money was being used to help meet the utility’s day-to-day cash needs.

So money earmarked for the Government has been helping to keep the water company operating.

Now, in the latest development, Water Minister Matthew Samuda and NWC officials are defending the proposed increase.

They say rising costs, repeated droughts and ageing infrastructure have left the utility needing more revenue to maintain and improve supply.

However, NWC says its lowest-consumption customers would face a significantly smaller proposed increase. But the full breakdown hasn’t been released, and the OUR has not approved anything yet.

The question for the regulator is how much additional revenue NWC needs and what customers should receive in return.

Because higher bills should come with clear commitments: better service, stronger financial management and measurable improvements.

And that’s the bottom line.

Would you support paying more if reliable water were guaranteed, or should NWC fix its finances first?