Opinion piece: Why bottled water should be taxed 

On Monday 28 September, Het FD reported that the Belgian government, on behalf of Spa, had successfully lobbied against a tax on bottled water in the Netherlands. The result: since 2024, bottled water has been exempt from consumption tax.

This is a fundamental policy mistake. The Dutch government is effectively subsidising the most polluting form of water consumption, while our tap water, superior in quality and 300 times more environmentally friendly, is taxed more heavily.

The new Parliament, sworn in after the 29 October elections, must act quickly to correct this fiscal mistake. Its economic and environmental consequences are far more damaging than many people realise.

The numbers don’t lie. Bottled water has a carbon footprint nearly 300 times higher than tap water, and producing just one litre requires two to four litres of water. Yet every year, the Dutch consume 290 million litres of it, even though our tap water ranks among the best in the world and is subject to stricter quality standards than bottled water. At the same time, single-use plastic remains a serious environmental problem.

The consumption tax was introduced to encourage healthy choices, an intention we wholeheartedly support. But in its current form it creates a perverse incentive: the tax on tap water amounts to nearly 30%, while bottled water is only subject to VAT. VEWIN, the association of Dutch water companies, rightly noted in May 2024 that this fiscal discrepancy runs counter to the policy’s intended goals.

Market distortions

The exemption fundamentally distorts the market. Producers of single-use plastic retain an artificial competitive advantage, while companies investing in sustainable, reusable alternatives are penalised. This fiscal construction undermines the Netherlands’ reputation as a sustainability frontrunner and slows down the transition to a circular economy.

Tap water is more strictly regulated than bottled water, cheaper, and at least as healthy in the Netherlands. There are therefore no grounds whatsoever to justify a tax advantage.

Fiscal correction needed

The solution is simple: reintroduce the consumption tax on bottled water, in line with other non-alcoholic drinks. Invest the revenues in public drinking water facilities and in education about tap water use.

This measure would achieve three goals: less plastic waste, lower costs for consumers, and healthier consumption patterns. It would also restore a level playing field for all market participants.

The tax advantage bottled water currently enjoys is no longer justifiable. Political parties that take sustainability and public health seriously must correct this exemption without delay.

Signed,

Virginia Yanquilevich

CEO of Dopper