The World Health Organization (WHO) is warning that sugary drinks and alcoholic beverages are becoming more affordable in many countries because tax rates have remained low for years. This growing affordability is linked to increasing rates of obesity, diabetes, heart disease, cancers, and injury-related harms, with children and young adults facing some of the greatest risks.
In two global reports released today, WHO calls on governments to significantly strengthen and redesign taxes on sugary drinks and alcohol. The agency says weak and outdated tax systems are keeping these products cheap, even as health systems come under mounting financial pressure from preventable noncommunicable diseases and injuries.
“Health taxes are one of the strongest tools we have for promoting health and preventing disease”
said WHO Director-General Dr Tedros Adhanom Ghebreyesus. He added that raising taxes on products such as tobacco, sugary drinks, and alcohol can reduce harmful consumption and generate revenue for essential health services.
WHO says the global market for sugary drinks and alcoholic beverages generates billions in profits and supports widespread consumption. However, governments capture only a small share of this value through health-motivated taxes, leaving societies to shoulder the long-term health and economic costs.
The reports note that at least 116 countries tax sugary drinks, often focusing on sodas. Many other high-sugar products, including 100% fruit juice, sweetened milk drinks, and ready-to-drink coffees and teas, are frequently not covered. WHO also reports that while 97% of countries tax energy drinks, this share has not changed since the 2023 global report.
A separate WHO report finds that at least 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Even so, alcohol has become more affordable, or stayed similarly priced, in most countries since 2022 because taxes have not kept up with inflation and income growth. WHO also notes that wine remains untaxed in at least 25 countries, mostly in Europe, despite known health risks.
“More affordable alcohol drives violence, injuries and disease”
said Dr Etienne Krug, Director of WHO’s Department of Health Determinants, Promotion and Prevention. He warned that while industry profits, the public experiences the health harms and society absorbs the broader economic costs.
Across regions, WHO reports that alcohol tax shares remain low, with median global excise shares of 14% for beer and 22.5% for spirits. Sugary drink taxes are also described as weak and poorly designed, with the median tax making up only about 2% of the price of a typical sugary soda and often covering only a subset of beverages, leaving much of the market untaxed. WHO adds that few countries adjust these taxes for inflation, allowing harmful products to become steadily more affordable.
WHO says these patterns persist even though a 2022 Gallup poll found that most respondents supported higher taxes on alcohol and sugary beverages. The agency is urging countries to raise and redesign taxes through its “3 by 35” initiative, which aims to increase the real prices of tobacco, alcohol, and sugary drinks by 2035 so they become less affordable over time and help protect public health.