By Rita Enemuru, Reporting
The World Health Organization (WHO) has called on governments worldwide to significantly increase taxes on sugary drinks and alcoholic beverages in order to save lives and increase revenues.
The WHO warned that consistently low tax rates are making sugary and alcoholic products cheaper and more accessible, thereby fuelling preventable diseases, injuries and mounting pressure on health systems.
The WHO made the call in a statement published on its official X handle on Tuesday, following the release of two new global reports that examined taxation on sugary drinks and alcohol.
The reports highlight how weak and poorly designed tax systems are allowing harmful products to remain affordable while governments struggle to fund responses to noncommunicable diseases.
According to the WHO, sugary drinks and alcoholic beverages are becoming increasingly affordable in many countries because taxes have failed to keep pace with inflation and rising incomes.
This trend, the organisation warned, is contributing to higher rates of obesity, diabetes, heart disease, cancers and injuries, particularly among children and young adults.
The WHO Director-General, Dr Tedros Adhanom Ghebreyesus said: “Health taxes are one of the strongest tools we have for promoting health and preventing disease.
“By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The WHO noted that the global market for sugary drinks and alcoholic beverages generates billions of dollars in profits each year, encouraging widespread consumption and boosting corporate earnings.
However, governments capture only a small portion of this value through health-related taxes, leaving societies to shoulder the long-term health and economic consequences of preventable illnesses.
According to the reports, data showed that at least 116 countries currently tax sugary drinks, mainly carbonated soft drinks.
However, many other high-sugar beverages such as 100 per cent fruit juices, sweetened milk drinks and ready-to-drink coffees and teas are not taxed in many jurisdictions.
While 97 per cent of countries tax energy drinks, the WHO said this figure has remained unchanged since its last global assessment in 2023.
On alcohol, a separate WHO report revealed that at least 167 countries impose some form of tax on alcoholic beverages, while 12 countries ban alcohol entirely.
Despite this, alcohol has either become more affordable or remained the same price in most countries since 2022, largely because tax rates have not been adjusted for inflation or income growth.
The report also found that wine remains untaxed in at least 25 countries, mostly in Europe, despite clear evidence of associated health risks.
“More affordable alcohol drives violence, injuries and disease,” said 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.”
The WHO further disclosed that across regions, tax shares on alcohol remain low, with global excise tax share medians standing at 14 per cent for beer and 22.5 per cent for spirits.
For sugary drinks, taxes are described as weak and poorly targeted, with the median tax accounting for only about two per cent of the retail price of a common sugary soda.
In many countries, these taxes apply only to a limited range of beverages, leaving large segments of the market untaxed.
The reports also found that few countries routinely adjust these taxes to account for inflation, allowing health-harming products to become steadily more affordable over time.
This situation persists despite public support for higher taxes.
A 2022 Gallup Poll cited by the WHO showed that the majority of people surveyed were in favour of increased taxes on alcohol and sugary beverages.
In response, the WHO is urging governments to raise and redesign health taxes under its new “3 by 35” initiative.
The initiative aims to increase the real prices of three products: tobacco, alcohol and sugary drinks by 2035, making them less affordable over time and helping to protect public health while generating sustainable revenue for health services.
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