GENEVA, Switzerland – The World Health Organisation (WHO) urged governments worldwide on Tuesday to significantly increase taxes on sugary drinks and alcohol, warning that consistently low levies are making harmful products increasingly affordable while fuelling a global epidemic of preventable diseases.
The UN health agency said weak taxation systems across most countries are driving rising rates of obesity, diabetes, heart disease and cancer, while allowing beverage industries to generate billions in profits with minimal government oversight.
“Weak tax systems are allowing harmful products to remain cheap while health systems face mounting financial pressure from preventable non-communicable diseases,” the WHO stated in its announcement.
The organisation emphasised that while such beverages generate massive industry revenues, governments capture only a small fraction through health-driven taxes, leaving societies to bear the long-term health and economic burden.
“Strongest tools” for public health
WHO Director-General Tedros Adhanom Ghebreyesus called health taxes among the most effective policy instruments available to governments.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease,” Tedros said. “By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services.”
Speaking at a press conference, Tedros highlighted the particular importance of such policies for developing nations struggling with declining aid funding, noting that health taxes could help countries transition toward sustainable self-reliance in healthcare financing.
The WHO chief acknowledged significant implementation challenges ahead.
“They can be politically unpopular, and they attract opposition from powerful industries with deep pockets and a lot to lose,” Tedros told reporters. However, he pointed to successful examples in the Philippines, Britain and Lithuania as proof that well-designed health taxes can be effective policy tools.
Targeting behavioral change
Jeremy Farrar, WHO assistant director-general for health promotion, drew parallels between tobacco and sugary drink taxation, citing clear evidence that higher taxes reduce consumption.
“This is also about using taxation as a move to shift behaviour,” Farrar explained, adding that such policies could strengthen disease prevention efforts in countries grappling with rising non-communicable diseases while generating healthcare investment funds.
The WHO’s twin global reports revealed significant inconsistencies in current taxation approaches. While at least 116 countries tax sugary drinks like sodas, many high-sugar products escape taxation entirely.
“Many other high-sugar products, such as 100% fruit juices, sweetened milk drinks and ready-to-drink coffees and teas, escape taxation,” the WHO noted.
Alcohol affordability rising
The alcohol taxation report found beer became more affordable in 56 countries between 2022 and 2024, while becoming less affordable in only 37 countries. Wine remains exempt from excise taxes in at least 25 countries, particularly across Europe.
“Excise taxes should apply to all alcoholic beverages,” the report stated. “There is significant room for better design and higher excise taxes on alcoholic beverages to decrease affordability and thereby reduce alcohol consumption and its related harms.”
Etienne Krug, head of WHO’s health determinants, promotion and prevention department, warned that more affordable alcohol “drives violence, injuries and disease.”
“While industry profits, the public often carries the health consequences and society the economic costs,” Krug said.
The WHO is promoting these tax increases as part of its “3 by 35” initiative, which aims to raise prices on tobacco, alcohol and sugary drinks by 2035.
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