Poland's bottled water VAT rate sparks legal and fiscal debate

Polish bottling company Nałęczów Zdrój, producer of the mineral water brand Cisowianka, has filed a lawsuit against the state seeking over 5 million PLN in compensation. The company argues that the 23 percent VAT applied to plain bottled water discriminates against water compared with sugary drinks, which can qualify for a reduced 5 percent rate if they contain at least 20 percent fruit or vegetable juice. The claim has also been forwarded to the European Commission, prompting inquiries from EU officials.

In response, the Ministry of Finance explained that lowering the VAT rate on bottled water could have significant fiscal repercussions, especially amid heightened public spending on defence and deficit concerns. During a parliamentary interpellation, MP Marcin Józefaciuk questioned the justification for the high rate, citing health and social considerations, while Ministry spokesperson Jarosław Neneman highlighted the historical basis of the current tax structure and the need for careful analysis before any change.

The debate underscores tensions between public‑health objectives, industry interests, and budgetary constraints in Poland’s tax policy.