The World Health Organisation has called on governments to significantly strengthen taxes on sugary drinks and alcoholic beverages to save lives and increase revenue.
In two new global reports released on Tuesday, the agency stated that sugary drinks and alcoholic beverages are getting cheaper, due to consistently low tax rates in most countries, fueling obesity, diabetes, heart disease, cancers and injuries, especially in children and young adults.
The reports warn that weak tax systems are allowing harmful products to remain cheap while health systems face mounting financial pressure from preventable noncommunicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” Tedros Ghebreyesus, WHO Director-General said.
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“By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services,” he added.
According to WHO, the combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profit, fueling widespread consumption and corporate profit. Yet governments capture only a relatively small share of this value through health-motivated taxes, leaving societies to bear the long-term health and economic costs.
The reports show that at least 116 countries tax sugary drinks, many of which are sodas. But many other high-sugar products, such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, escape taxation. While 97% of countries tax energy drinks, this figure has not changed since the last global report in 2023.
A separate WHO report showed that at least 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Despite this, the agency said alcohol has become more affordable or remained unchanged in price in most countries since 2022, as taxes fail to keep pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mostly in Europe, despite clear health risks.
“More affordable alcohol drives violence, injuries and disease. While industry profits, the public often carries the health consequences and society the economic costs,” Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention said.
WHO found that across regions, tax shares on alcohol remain low with global excise share medians of 14% for beer and 22.5% for spirits;
Sugary drink taxes are weak and poorly targeted with the median tax accounting for only about 2% of the price of a common sugary soda and often applying only to a subset of beverages, missing large parts of the market; and few countries adjust taxes for inflation, allowing health-harming products to become steadily more affordable.
The global body noted that these trends in tax persist despite a 2022 Gallup Poll finding that the majority of people surveyed supported higher taxes on alcohol and sugary beverages.
WHO, therefore urged countries to raise and redesign taxes as part of its new 3 by 35 initiative, which aims to increase the real prices of three products, tobacco, alcohol and sugary drinks, by 2035 making them less affordable over time to help protect people’s health.
