By Joke Kujenya
IN TODAY’s world, cheaper sugary drinks and alcoholic beverages are driving rising rates of obesity, diabetes, heart disease, cancers and injuries as weak tax systems keep harmful products affordable, particularly for children and young adults.
The World Health Organization (WHO), in its latest newsletter, notes that consistently low tax rates in most countries are allowing sugary drinks and alcohol to become cheaper while health systems face increasing pressure from preventable noncommunicable diseases and injuries.
It also warns that lower prices are linked to higher consumption and a growing burden of disease.
In two new global reports released today, Monday, WHO calls on governments to significantly strengthen taxes on sugary drinks and alcoholic beverages to save lives and raise revenue for health services.
“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,” Ghebreyesus further affirmed.
He also said the combined global market for sugary drinks and alcoholic beverages generates billions of dollars in profit, yet governments capture only a small share of this value through health motivated taxes.
Ghebreyesus argues that societies are left to bear the long-term health and economic costs.
WHO reports further showed that at least 116 countries tax sugary drinks, mostly sodas, while many other high sugar products such as 100% fruit juices, sweetened milk drinks and ready to drink coffees and teas are not taxed, adding that about 97% of countries tax energy drinks, a figure unchanged since the last global report in 2023.
A separate WHO report found that at least 167 countries levy taxes on alcoholic beverages, while 12 countries ban alcohol entirely.
Despite this, alcohol has become more affordable or remained unchanged in price in most countries since 2022 as taxes fail to keep pace with inflation and income growth.
Wine remains untaxed in at least 25 countries, mostly in Europe.
“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.”
Krug said tax shares on alcohol remain low, with global excise share medians of 14% for beer and 22.5% for spirits.
He added that sugary drink taxes are weak and poorly targeted, with median taxes accounting for about 2% of the price of a common sugary soda and often applied to only part of the market.
According to WHO, few countries adjust taxes for inflation, allowing harmful products to become steadily more affordable.
The trends, Krug said, persist despite a 2022 Gallup Poll showing majority support for higher taxes on alcohol and sugary beverages.
He therefore reiterated that this is the reason that the WHO is calling on 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.
