Excise Duty Removed from Bottled and Packaged Drinking Water

What Has Changed?

The Finance Act, 2026 removed bottled or similarly packaged waters from the category of products subject to Excise Duty.

The amendment deleted the words “bottled or similarly packaged waters and other” from the description covering non-alcoholic beverages subject to Excise Duty.

What Does This Mean?

Potential Impact

The removal of Excise Duty may reduce the tax cost associated with bottled water.

For consumers, this may support greater affordability and access to drinking water.

For water producers, the change may provide greater flexibility in pricing and margins.

The amendment also reflects a policy approach of treating drinking water differently from other non-alcoholic beverages for Excise Duty purposes.