According to the World Health Organization (WHO), raising taxes on tobacco, alcohol, and sugar-sweetened beverages may represent one of the most effective population-level strategies to reduce the chronic disease burden and strengthen health system financing. The agency urged governments to act without delay, citing consistent evidence that price increases reduce consumption and improve public health outcomes.

The prevalence of chronic diseases, including obesity, diabetes, cardiovascular disease, and cancer, continues to rise globally. Alcohol use is also associated with violence and accidents. Despite this, sugar-sweetened beverages and alcoholic drinks remain insufficiently taxed in many countries, even though they are established contributors to the disease burden.

Tax Leverage

“Health taxes are among the most powerful tools we have to promote health and prevent disease,” said WHO Director-General Tedros Adhanom Ghebreyesus in a statement released to coincide with the launch of the report. “By raising taxes on products such as tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and free up resources to fund essential health services.”

Higher taxation generates additional public revenue. Survey data indicate broad public support for such measures, reinforcing the momentum behind the WHO initiative “3 by 35,” which aims to increase taxes on tobacco, alcohol, and sugar-sweetened beverages by 2035.

Manufacturers of these products generate substantial profits, while the population and governments bear the health and economic consequences. Étienne Krug, MD, director of the Department of Determinants of Health at the WHO, stated that “While the industry reaps profits, the population often bears the health consequences, and society, the economic costs.”

The median tax on soft drinks is approximately 2%, and the coverage across product categories is inconsistent. Many countries do not adjust these taxes for inflation, which increases their affordability over time. Products such as high-sugar fruit juices, sweetened dairy drinks, and ready-to-consume coffee and tea are often minimally taxed.

Rising affordability

At least 167 countries impose taxes on alcohol, whereas 12 prohibit it. The global median excise duty is 14.0% for beer and 22.5% for spirits. Excise taxes are typically based on product volume, whereas value-added taxes are linked to price.

In many countries, alcohol has become more affordable or has not increased in price since 2022, reflecting tax policies that have not kept pace with inflation or income growth. Wine remains exempt from taxation in at least 25 countries, primarily in Europe.

The WHO reported that sugar-sweetened beverages and alcoholic drinks are becoming more affordable, particularly among children and young adults. The agency characterizes this trend as concerning and emphasizes the need for urgent policy actions.

This story was translated from Univadis France, part of the Medscape Professional Network.