Dutch industry groups urge MPs to scrap planned water tax rise

Ten Dutch industry organisations are urging MPs to scrap a planned increase in tax on mains water, arguing it will raise bills without meaningfully reducing water use. Parliament is due to vote on the tax plan next month.

The government intends to raise the rate by €0.10 from 1 January, to €0.537 per 1,000 litres. The increase is expected to generate €111 million a year, which the government plans to use to fund other measures.

The organisations include drinking-water companies, businesses that use large amounts of water, the chemical industry, hospitality businesses, breweries and car washes. Vewin, the association of Dutch water companies, says households, businesses and institutions will pay more without gaining access to additional water. Its chairman, Pieter Litjens, called for measures that directly encourage water saving and reuse instead.

A study commissioned by the Ministry of Infrastructure and Water Management two years ago concluded that a higher tax would have “no or very little effect” on drinking-water use, according to the report. The tax is nevertheless set to rise. Its exemption threshold, previously 300,000 litres, was increased to 50 million litres this year; from next year, there will be no threshold.

The industry groups estimate that the added costs for some large industrial users could exceed €1 million. They also say a municipal swimming pool using 25 million litres of drinking water a year would see its tax bill rise from about €130 in 2025 to €13,425 next year.