The World Health Organization (WHO) has issued a stark warning that sugary drinks and alcoholic beverages are becoming increasingly affordable worldwide due to inadequate taxation, leading to a surge in preventable diseases and injuries, particularly among young people.
In two new global reports released today, the health authority is urging governments to significantly increase and reform taxes on these products. The reports conclude that current tax systems are failing, allowing harmful consumption to rise while health systems buckle under the financial strain of treating obesity, diabetes, heart disease, cancers, and injuries linked to these products.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” stated 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 highlight a critical disconnect: while the global markets for sugary drinks and alcohol generate enormous corporate profits, governments capture only a small fraction of this value through health-motivated taxes. This leaves societies to bear the long-term health and economic costs.
Key Findings from the Reports:
* Sugary Drinks: While 116 countries tax sugary drinks like soda, many other high-sugar products—such as 100% fruit juices, sweetened milk, and ready-to-drink coffees and teas—often escape taxation. The median tax on a common sugary soda accounts for a mere 2% of its retail price, making these products cheap and accessible.
* Alcohol: Although 167 countries tax alcoholic beverages, affordability has increased or remained static in most nations since 2022. Taxes have not kept pace with inflation and income growth. Notably, wine remains untaxed in at least 25 countries, primarily in Europe.
* Missed Opportunities: Few countries adjust these “sin taxes” for inflation, allowing harmful products to become steadily cheaper over time. Tax structures are often poorly targeted, missing large segments of the market.
“More affordable alcohol drives violence, injuries and disease,” emphasized Dr. Etienne Krug, Director of WHO’s Department of Health Determinants. “While industry profits, the public often carries the health consequences and society the economic costs.”
The WHO’s call to action is part of its new “3 by 35” initiative, which aims to make tobacco, alcohol, and sugary drinks progressively less affordable by 2035 to protect public health. The push for stronger taxes is backed by public sentiment; a 2022 Gallup Poll found majority support in surveyed countries for higher taxes on both alcohol and sugary beverages.
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