WHO Urges Global Tax Hike on Sugary Drinks and Alcohol to Combat Health Crisis
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Global health body warns consistently low taxes are fueling a rise in preventable diseases and injuries, notably among young people.
the World Health Association (WHO) is calling for notable increases in taxes on sugary drinks and alcoholic beverages to combat a growing global health crisis. New global reports detail how these readily available, inexpensive products are contributing to a surge in obesity, diabetes, heart disease, cancers, and injuries, with a disproportionate impact on children and young adults.
mounting Pressure on Health Systems
According to the WHO, weak tax systems are allowing harmful products to remain cheap, simultaneously placing immense financial strain on healthcare systems grappling with the consequences of preventable noncommunicable diseases and injuries.”Health taxes are one of the strongest tools we have for promoting health and preventing disease,” stated Dr. tedros Adhanom Ghebreyesus,WHO Director-General. “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The global market for sugary drinks and alcohol generates billions in profit, yet governments capture only a small fraction of this revenue through health-focused taxes. This leaves societies to shoulder the long-term health and economic burdens associated with widespread consumption.
Uneven Taxation Across Product Categories
The reports reveal a fragmented approach to taxation. While at least 116 countries currently tax sugary drinks – including many sodas – numerous other high-sugar products, such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, remain untaxed. A significant 97% of countries tax energy drinks, a figure that has remained stagnant since the last global report in 2023.
A separate analysis shows that at least 167 countries levy taxes on alcoholic beverages, with 12 nations enacting complete alcohol bans. However, despite these measures, alcohol has become more affordable or maintained its price in most countries since 2022, as tax increases fail to keep pace with inflation and income growth. Notably, wine remains entirely untaxed in at least 25 countries, primarily in Europe, despite well-documented health risks.
Affordability Fuels Harmful Outcomes
“More affordable alcohol drives violence, injuries and disease,” highlighted Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. “While industry profits,the public often carries the health consequences and society the economic costs.”
Regional analysis conducted by the WHO reveals several key trends:
- Alcohol taxes 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 to only a limited range of beverages.
- few countries adjust taxes for inflation, allowing health-harming products to become increasingly affordable over time.
These trends persist despite a 2022 Gallup Poll indicating that a majority of people surveyed support higher taxes on both alcohol and sugary beverages.
The “3 by 35” Initiative
In response,the WHO is launching its new “3 by 35” initiative,aiming to increase the real prices of tobacco,alcohol,and sugary drinks by 2035.This ambitious plan seeks to make these products less affordable over time, ultimately protecting public health. The organization is urging countries to raise and redesign taxes as a crucial step towards achieving this goal.
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