WHO Advocates for Higher Taxes on Sugary Drinks and Alcohol to Combat Health Issues
Urgent Call for Tax Increases
New Delhi, Jan 15: The World Health Organization (WHO) emphasizes the necessity of raising taxes on fruit juices, sugary beverages, and alcoholic drinks to address the growing prevalence of non-communicable diseases such as obesity, diabetes, heart disease, and certain cancers, particularly among children and young adults.
In two recent global reports, the WHO expressed alarm over the decreasing costs of sugary and alcoholic drinks, attributing this trend to persistently low tax rates in numerous nations.
While over 100 countries impose taxes on sugary beverages like sodas, many high-sugar items, including 100% fruit juices, sweetened milk products, and ready-to-drink coffees and teas, remain untaxed. The average tax on these items constitutes merely about 2% of the price of a typical sugary soda.
Moreover, only a limited number of countries are adjusting their tax rates to account for inflation, which allows these unhealthy products to become increasingly affordable.
The affordability of these harmful products is generating substantial profits, while health systems worldwide are grappling with escalating financial burdens from preventable diseases and injuries, according to the WHO. The organization urges governments to significantly enhance taxes on sugary and alcoholic beverages.
“Health taxes are among the most effective strategies we possess for promoting health and preventing diseases,” stated Dr. Tedros Adhanom Ghebreyesus, Director-General of WHO.
“By raising taxes on items like tobacco, sugary drinks, and alcohol, governments can diminish harmful consumption and generate funds for essential health services,” he added.
In a separate report, the WHO noted that alcohol prices have either become more affordable or remained stable in most countries since 2022, despite evident health risks. At least 167 nations impose taxes on alcoholic beverages, while 12 countries have outright bans on alcohol.
The WHO discovered that tax rates on alcohol are generally low across various regions, with global excise tax medians of 14% for beer and 22.5% for spirits.
“More affordable alcohol leads to increased violence, injuries, and health issues,” remarked Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion, and Prevention.
“While the industry profits, the public bears the health repercussions, and society faces the economic burdens,” Krug added.
The WHO has urged nations to elevate and redesign taxes, aiming to increase the real prices of tobacco, alcohol, and sugary drinks by 2035, thereby making them less accessible over time to safeguard public health.