Sugary drinks and alcoholic beverages are getting cheaper, the World Health Organisation (WHO) said Tuesday, January 13, urging governments to raise taxes to reduce consumption and promote good health practise.
The WHO rues that low tax rates on the products in most countries was fueling obesity, diabetes, heart disease, cancers and injuries, especially in children and young adults.
In two global reports released on Tuesday, January 13, the WHO is now calling on governments to significantly raise taxes on sugary drinks and alcoholic beverages.
“Weak tax systems are allowing harmful products to remain cheap while health systems face mounting financial pressure from preventable noncommunicable diseases and injuries,” the WHO reports warn.
WHO Director-General Dr Tedros Adhanom Ghebreyesus says health taxes are one of the strongest tools countries have for promoting health and preventing diseases.
“By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services,” he says.
During the unveiling of the reports, Ghebreyesus noted that combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profit, fueling widespread consumption and corporate profit. Yet governments capture only a relatively small share of this value through health-motivated taxes, leaving societies to bear the long-term health and economic costs.
The reports show that at least 116 countries tax sugary drinks, mainly sodas. But many other high-sugar products, such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, escape taxation.
Key WHO findings across regions:
- Tax shares on alcohol 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 only to a subset of beverages, missing large parts of the market; and
- Few countries adjust taxes for inflation, allowing health-harming products to become steadily more affordable.
