Cheaper drinks fuel disease, WHO urges higher health taxes

Sugary drinks and alcoholic beverages are becoming cheaper in many countries because of persistently low tax rates, a trend the World Health Organization warns is accelerating obesity, diabetes, heart disease, cancers, and injuries, particularly among children and young adults.

In two new global reports released today, the WHO called on governments to significantly strengthen taxes on sugary drinks and alcohol, warning that weak tax systems are keeping harmful products affordable while health systems face rising costs from preventable noncommunicable diseases and injuries.

“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” said Dr. Tedros Adhanom Ghebreyesus, WHO director-general.

“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 note that the combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profit, driving widespread consumption and corporate earnings, while governments capture only a small share of this value through health-motivated taxes, leaving societies to shoulder long-term health and economic costs.

According to WHO, at least 116 countries tax sugary drinks, most commonly sodas, but many other high-sugar products, such as 100 percent fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, are often excluded from taxation.

The reports also found that while 97 percent of countries tax energy drinks, this proportion has not changed since the previous global assessment in 2023, indicating limited progress in expanding or strengthening sugary drink taxes.

A separate WHO analysis showed that at least 167 countries levy taxes on alcoholic beverages, while 12 countries ban alcohol entirely, yet alcohol has become more affordable or remained unchanged in price in most countries since 2022 because taxes have failed to keep pace with inflation and income growth.

Wine remains untaxed in at least 25 countries, mostly in Europe, despite well-documented health risks associated with alcohol consumption, the reports said.

“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.”

Across regions, WHO found that tax shares on alcohol remain low, with global median excise shares of 14 percent for beer and 22.5 percent for spirits, while sugary drink taxes typically account for only about 2 percent of the price of a common sugary soda and often apply to only part of the beverage market.

The reports also highlighted that a few countries adjust health taxes for inflation, allowing alcohol and sugary drinks to become steadily more affordable over time despite growing evidence of their health impacts.

These trends persist despite a 2022 Gallup Poll showing that a majority of respondents supported higher taxes on alcohol and sugary beverages, suggesting public backing for stronger fiscal measures.

WHO is urging governments 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 make them less affordable over time and help protect population health.