Food industry opposes higher tax on mains water

For food manufacturers, replacing drinking water is often easier said than done. Food safety and hygiene impose strict requirements on water quality. Yet the Dutch government wants to raise the tax on mains water by 23 percent. FNLI and other trade associations are calling on the House of Representatives to scrap the plan. They favor targeted support for water conservation and reuse. In their view, the proposed increase would mainly lead to higher costs.

The proposal is part of the 2027 Tax Plan. The government wants to increase the tax on mains water (BoL) effective January 1, 2027. The rate would rise from 43.7 to 53.7 euro cents per cubic meter. The organizations are presenting their appeal during parliamentary consideration of the tax plan.

Higher costs for drinking water users

The rate increase comes on top of the abolition of the tax cap. Businesses that use large volumes of drinking water would face a particularly sharp increase in costs. The appeal comes from ten trade associations, including Vewin and VEMW. Other organizations from the food industry have joined FNLI in signing the appeal. These are Nederlandse Zuivel Organisatie (NZO), FWS and Nederlandse Brouwers.

Investing in lower water use

According to the signatories, the tax increase would do little to encourage water conservation. The additional revenue would also go into general government funds. It would not be used for drinking water or sustainability measures.

The organizations argue that conserving water requires investment in water-saving technologies and water reuse. They want the government to provide businesses with targeted support for these investments. They are also calling for legal and practical barriers to be removed. In addition, they advocate making alternative water sources available.

Fnli.nl