WHO is urging governments worldwide to raise taxes on sugary drinks and alcohol, warning that weak tax policies are driving consumption and worsening preventable health and economic burdens.
Sugary drinks and alcoholic beverages are becoming increasingly affordable in many parts of the world due to persistently low tax rates, a trend that the World Health Organization (WHO) warns is contributing to rising rates of obesity, diabetes, cardiovascular disease, cancers, and injuries, particularly among children and young adults.
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In two newly released global reports, WHO has called on governments to significantly strengthen taxation on sugary beverages and alcohol. The reports caution that weak and outdated tax structures are keeping harmful products inexpensive, while health systems face growing financial strain from preventable noncommunicable diseases and alcohol-related injuries.
“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.”
According to WHO, the global markets for sugary drinks and alcoholic beverages generate billions of dollars in revenue each year. However, governments collect only a limited share of this value through health-focused taxes, leaving societies to shoulder the long-term health and economic consequences associated with excessive consumption.
The reports indicate that at least 116 countries currently tax sugary drinks, primarily carbonated soft drinks. Many high-sugar products, including 100 percent fruit juices, sweetened milk-based beverages, and ready-to-drink coffees and teas, remain largely untaxed. While 97 percent of countries impose taxes on energy drinks, this proportion has remained unchanged since WHO’s previous assessment in 2023.
“More affordable alcohol drives violence, injuries and disease,” highlighted 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.”
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A separate WHO analysis found that at least 167 countries apply taxes on alcoholic beverages, while 12 countries prohibit alcohol entirely. Despite this, 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 rising incomes. The report also noted that wine remains untaxed in at least 25 countries, largely in Europe, despite well-established health risks.
