By Ayomide Otitoju
Sugary drinks and alcoholic beverages are becoming increasingly affordable in many countries due to persistently low tax rates, a trend the World Health Organization (WHO) says is driving rising cases of obesity, diabetes, heart disease, cancers and injuries, particularly among children and young adults.
In two new global reports released on Tuesday, the WHO urged governments to significantly strengthen taxes on sugary drinks and alcoholic beverages, warning that weak tax systems are keeping harmful products cheap while health systems struggle under the growing burden of preventable noncommunicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” WHO Director-General, Dr Tedros Adhanom Ghebreyesus, said. “By increasing taxes on products like tobacco, sugary drinks and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The reports noted that the global market for sugary drinks and alcoholic beverages generates billions of dollars in profits, yet governments capture only a small fraction of this value through health-related taxes, leaving societies to absorb the long-term health and economic costs.
According to the WHO, at least 116 countries currently tax sugary drinks, mainly sodas, but many other high-sugar products — including 100 per cent fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas — are often excluded. While 97 per cent of countries tax energy drinks, the figure has remained unchanged since the last global assessment in 2023.
A separate report showed that at least 167 countries impose taxes on alcoholic beverages, while 12 maintain total alcohol bans. Despite this, alcohol has become more affordable or remained similarly priced in most countries since 2022, as tax rates have failed to keep pace with inflation and income growth. The WHO also noted that wine remains untaxed in at least 25 countries, mostly in Europe, despite its well-documented 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. He added that while industry profits, the public bears the health consequences and societies shoulder the economic costs.
The reports further revealed that global excise tax shares remain low, with median rates of 14 per cent for beer and 22.5 per cent for spirits. Sugary drink taxes were described as weak and poorly targeted, accounting for only about two per cent of the retail price of a typical sugary soda and often covering only a limited range of beverages. In addition, few countries regularly adjust taxes for inflation, allowing health-harming products to become steadily more affordable over time.
These trends persist despite a 2022 Gallup poll showing that a majority of people surveyed support higher taxes on alcohol and sugary drinks. In response, the WHO is calling on countries to raise and redesign health taxes under its new “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol and sugary drinks by 2035 to curb consumption and protect public health.
