Increase in VAT on Bottled Water: A Response to the Industrial Scandal

In the wake of revelations about controversial practices within the bottled water industry, the Senate voted overnight from Wednesday to Thursday to increase VAT on bottled water. This measure, included in the 2025 budget proposal, was adopted by a show of hands despite government opposition. The stated goal: to encourage consumers to switch to tap water.

“In a context where natural resource management, corporate responsibility, and ecological challenges are at the forefront of debates, it is essential to rethink our fiscal policy,” declared Socialist Senator Hervé Gillé. He emphasized that this decision addresses concerns raised by the scandal involving Nestlé Waters.

A Scandal That Shook the Industry

Earlier this year, Swiss giant Nestlé’s subsidiary admitted to using banned disinfection systems to ensure the “food safety” of its mineral waters. These practices sparked widespread outrage and prompted the Senate to launch a commission of inquiry in the fall. The commission aims to investigate the use of illegal filtration methods by industry players.

A Targeted Tax Reform

The amendment, introduced by Macronist Senator Nadège Havet, proposes eliminating the reduced VAT rate of 5.5% currently applied to plastic bottled water, raising it to 20%. However, bottled water sold in overseas territories is exempt from this increase. According to the Senate, this measure could generate between 150 and 300 million euros annually.

Despite these arguments, Public Accounts Minister Laurent Saint-Martin opposed the move, arguing that VAT should not serve as an incentive tax tool.

This decision marks a turning point in ecological and industrial policy management, highlighting a growing determination to hold companies accountable while encouraging consumers to adopt more sustainable habits.