New York : The World Health Organisation has called on governments to significantly strengthen taxes on sugary drinks and alcoholic beverages, warning in two new reports that weak tax systems are allowing harmful products to remain cheap while health systems face mounting financial pressure from preventable noncommunicable diseases and injuries.
Dr. Tedros Adhanom Ghebreyesus, WHO Director-General, said, according to UN News: “Health taxes are one of the strongest tools we have for promoting health and preventing disease. By increasing taxes on products such as tobacco, sugary drinks and alcohol, governments can reduce harmful consumption and unlock funds for vital health services”.
The WHO reported that the combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profits, driving wider consumption and increasing corporate earnings. However, governments capture only a relatively small share of this value through health-motivated taxes.
The two reports show that at least 116 countries tax sugary drinks, most of which are sodas, but many other sugar-rich products, such as fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, escape taxation.
The Organisation noted that while 97% of countries tax energy drinks, this figure has not changed since the last global report in 2023.
It also said that at least 167 countries levy taxes on alcoholic beverages, while 12 impose a complete ban on alcohol. Despite this, alcohol has become more affordable or remained the same price in most countries since 2022, because taxes have failed to keep pace with inflation and income growth.
WHO has called on 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, helping to protect people’s health by reducing their affordability over time.
