Increasing taxes on fruit juices, sugary drinks, and alcohol is crucial in addressing the surge of non-communicable diseases like obesity, diabetes, heart disease, cancers, and injuries, particularly among children and young adults, according to the World Health Organization (WHO). The WHO has raised concerns in two new global reports, highlighting that sugary drinks and alcoholic beverages are becoming more affordable due to consistently low tax rates in many countries. While over 100 nations tax sugary drinks, products like 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas often evade taxation, with the median tax on these items constituting only about 2% of a typical sugary soda’s price.
Only a handful of countries are adjusting taxes for inflation, leading to these health-damaging products becoming increasingly inexpensive. Despite generating substantial profits from their affordability, these harmful products are placing significant financial strain on healthcare systems worldwide due to preventable noncommunicable diseases and injuries. The WHO is urging governments to significantly enhance taxes on sugary drinks and alcoholic beverages, emphasizing that health taxes are potent tools for promoting health and preventing diseases.
Dr. Tedros Adhanom Ghebreyesus, WHO Director-General, stated, “Health taxes are one of the strongest tools we have for promoting health and preventing disease.” He emphasized that by raising taxes on items like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and allocate funds for essential health services. In a separate report, the WHO revealed that alcohol has become more affordable or maintained its price in most countries since 2022, despite evident health risks. While 167 countries impose taxes on alcoholic beverages, 12 have completely banned alcohol.
The WHO’s findings indicate that alcohol taxes remain low globally, with median excise shares of 14% for beer and 22.5% for spirits. Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion, and Prevention, warned that more affordable alcohol contributes to violence, injuries, and diseases. He highlighted that while the industry reaps profits, the public bears the health consequences and society incurs the economic costs. The WHO is calling on countries to raise and revamp taxes, increasing the real prices of tobacco, alcohol, and sugary drinks by 2035 to make them less affordable over time and safeguard public health.
