Geneva: Low tax rates in most countries have made sugary drinks and alcoholic beverages cheaper, fueling obesity, diabetes, heart disease, cancers, and injuries, especially among children, the World Health Organization (WHO) reported on Tuesday. WHO called on governments to significantly strengthen 'health taxes' on sugary drinks and alcoholic beverages to promote health and disease prevention. "By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services," said WHO Director-General Tedros Adhanom Ghebreyesus.
According to Philippines News Agency, at least 116 countries impose taxes on sugary drinks, including sodas. However, other high-sugar products, such as 100 percent fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, remain largely untaxed. A separate WHO report shows that at least 167 countries levy taxes on alcoholic beverages, while 12 countries have imposed total bans on alcohol. Despite these measures, alcohol has become more affordable or has not increased in price in most countries since 2022, as tax rates have failed to keep pace with inflation and income growth.
The WHO also noted that wine remains untaxed in at least 25 countries, most of them in Europe, despite well-documented health risks associated with alcohol consumption. The WHO reported that tax shares on alcohol remain low, with global median excise shares of 14 percent for beer and 22.5 percent for spirits. Taxes on sugary drinks also remain low, with the median tax accounting for only about 2 percent of the price of a typical sugary soda and often applying only to a subset of beverages.
'Few countries adjust taxes for inflation, allowing health-harming products to become steadily more affordable,' the report said.