WHO calls for higher taxes on alcohol & sugary drinks

The World Health Organization (WHO) has urged governments worldwide to significantly increase taxes on alcohol and sugary beverages, stating that existing levies remain low across many regions, two new reports released by the global health body state.

Speaking to journalists during a virtual briefing on January 13, Tedros Adhanom Ghebreyesus, Director General of WHO said, health taxes play a critical role in reducing the consumption of harmful products.

“Health taxes have been shown to reduce consumption of these harmful products, helping to prevent disease and reduce the burden on health systems,” he said. “At the same time, they generate an income stream that governments can use to invest in health, education and social protection.”

One of the reports, which examined taxation on sugary beverages, found that while at least 116 countries currently tax drinks like sodas and carbonated beverages, several high-sugar products remain outside the tax net. These include 100 percent fruit juices, sweetened milk drinks and ready-to-drink coffees and teas.

The second report, focusing on alcohol taxation, showed that although 167 countries levy taxes on beer, wine and spirits, alcohol has become more affordable or has not seen any real price increase in most countries since 2022. The WHO attributed this trend to alcohol taxes not being regularly adjusted to account for inflation and income growth.

According to the organisation, failure to update tax structures has weakened the effectiveness of alcohol taxation as a public health tool, allowing consumption to remain steady or rise despite existing levies.

The WHO reiterated that stronger and better designed tax policies on alcohol and sugary drinks could help curb non-communicable diseases while also strengthening public finances.