International Bottled Water Association (IBWA) has asked Vermont Governor Peter Shumlin to continue to oppose the sales taxes on bottled water included in the budget proposals.
IBWA has opposed to eliminate the existing sales tax exemption for bottled water in the current provision in House Bill 528 recently approved by the Vermont Senate and House of Representatives.
Of all the items including soft drinks, dietary supplements and other food products that Vermont lawmakers could impose a tax upon, they have opted to burden only bottled water.
This levying of taxes ignores the benefits of bottled water and may create an incentive to purchase items often associated with an unhealthy lifestyle.
A tax on bottled water by exempting other products will represent that bottled water is a poor choice but soft drinks, dietary supplements and others are acceptable to purchase and use on a regular basis.
In addition, Vermont participates in the Streamlined Sales and Use Tax Agreement (SSUTA). Apart from bottled water, other water-based products such as zero-calorie flavored water, sparkling water, seltzer water, fruit water and vitamin water will be included this tax under the SSUTA bottled water definition.
A tax on bottled water would affect those who can least afford it, such as the elderly and others on fixed incomes and would also establish an unfair and inconsistent source of revenue for government funding.
It would also impact sales that would hurt retailers on the borders of Vermont and small businesses that would struggle to compete with larger establishments.
