By Bunmi Yekini
Sugary drinks and alcoholic beverages are becoming cheaper in many countries because of persistently low tax rates, worsening obesity, diabetes, cancer and injuries and putting a growing strain on health systems, the World Health Organization said on Tuesday.
In two global reports released on Tuesday, the WHO urged governments to significantly strengthen taxes on sugary drinks and alcoholic beverages, warning that weak tax systems allow harmful products to remain affordable while societies shoulder the long-term health and economic costs.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” WHO Director-General Tedros Adhanom Ghebreyesus said in a statement. “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
The global market for sugary drinks and alcoholic beverages generates billions of dollars in profits, the WHO said, but governments capture only a small share of that value through health-related taxes. As a result, consumption remains high, particularly among children and young adults, contributing to rising rates of noncommunicable diseases.
The WHO found that at least 116 countries tax sugary drinks, mainly sodas, but many high-sugar products such as 100% fruit juices, sweetened milk drinks and ready-to-drink coffees and teas are often exempt. While 97% of countries tax energy drinks, that share has not changed since 2023.
A separate report showed that at least 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Even so, alcohol has become more affordable or stayed the same price in most countries since 2022 because taxes have not kept pace with inflation and income growth. Wine remains untaxed in at least 25 countries, mostly in Europe, despite evidence of health risks, the WHO said.
“More affordable alcohol drives violence, injuries and disease,” said Etienne Krug, director of the 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, the WHO found that excise taxes account for a median of 14% of beer prices and 22.5% of spirits prices, while sugary drink taxes typically make up only about 2% of the retail price of a common soda. Few countries regularly adjust such taxes for inflation, allowing health-harming products to become steadily more affordable.
The WHO said the trends persist despite a 2022 Gallup poll showing a majority of public support for higher taxes on alcohol and sugary beverages. It is urging countries to raise and redesign taxes under its “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.