Increasing taxes on sugary drinks and alcohol is crucial to combat rising non-communicable diseases, according to the World Health Organization.
NEW DELHI – The World Health Organization (WHO) has emphasized the urgent need to increase taxes on fruit juices, sugary drinks, and alcoholic beverages to address the growing prevalence of non-communicable diseases, including obesity, diabetes, heart disease, and certain cancers, particularly among children and young adults.
In two recent global reports, the WHO highlighted that the affordability of sugary drinks and alcohol has been bolstered by consistently low tax rates in many countries. While over 100 nations impose taxes on sugary beverages like sodas, other high-sugar products, including 100 percent fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, often evade taxation. The median tax on sugary sodas is a mere 2 percent of their retail price.
Moreover, few countries are adjusting these taxes for inflation, which allows these health-harming products to remain increasingly affordable. The WHO noted that the low cost of these beverages contributes to substantial profits for manufacturers, while health systems worldwide are strained under the financial burden of preventable non-communicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” stated Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. He further explained that by increasing taxes on products such as tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and generate funds for essential health services.
In a separate analysis, the WHO reported that the price of alcohol has either decreased or remained stable in most countries since 2022, despite the known health risks associated with its consumption. Currently, at least 167 countries impose taxes on alcoholic beverages, while 12 countries have implemented total bans on alcohol.
However, the WHO found that tax rates on alcohol remain low across various regions, with global median excise tax shares of 14 percent for beer and 22.5 percent for spirits. “More affordable alcohol drives violence, injuries, and disease,” warned Dr. Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion, and Prevention.
Dr. Krug added, “While industry profits, the public often bears the health consequences, and society faces the economic costs.”
The WHO is urging countries to raise and redesign taxes on tobacco, alcohol, and sugary drinks, aiming to increase their real prices by 2035. This strategy is intended to make these products less affordable over time, thereby protecting public health.
According to IANS, the WHO’s recommendations underscore the importance of fiscal policies in addressing health challenges associated with non-communicable diseases.