Brazil drops mineral water tax

Extraordinary news from this week’s 21st Brazil Mineral Water Congress, where I had the pleasure of being a speaker. Found to have the highest bottled water taxes anywhere in the world, Brazil’s Government has decided to reduce them dramatically.

As of today, 5th October, the federal tax of 21% will be abolished for natural mineral water. Local state taxes will continue, but they have started to come down too. The state of Santa Catarina has already cut its tax to 7%. It remains to be seen how far others will follow.

So, instead of rates as high as 40-45%, the new tax level in Santa Catarina will be a much fairer and healthier 7%.

This shows the impact good industry teamwork can have in influencing public policy. Many congratulations to ABINAM, the national association, on an historic achievement.