Dutch industry groups oppose tap water tax increase

Ten industry organizations, including Vewin and VEMW, have called on the Dutch House of Representatives to scrap a proposed tax increase on tap water. The minority government plans to raise the rate by 10 cents per 1,000 liters starting January 1, 2027, bringing the cost to 0.537 euros per 1,000 liters.

The groups argue that the increase, which is expected to generate 111 million euros annually to fund other government measures, will not effectively encourage water conservation. They cite a 2024 study by the Ministry of Infrastructure and Water Management which concluded that pricing changes have little to no effect on water usage.

Impacted sectors include the chemical industry, hospitality, breweries, car washes, and the food industry. Large industrial users could face additional costs exceeding 1 million euros. Furthermore, the removal of the previous consumption ceiling means the tax will apply to all water usage, significantly increasing the financial burden on businesses and institutions.